Agriculture and construction boost economic activity

Economic activity, as measured by gross domestic product (GDP), grew 0.6 percent in the June 2012 quarter, Statistics New Zealand said today. This growth follows revised growth of 1.0 percent in the March 2012 quarter.

The main contributors to the increase in economic growth this quarter were, by industry:

• agriculture (up 4.7 percent), with continued good growing conditions resulting in increased milk production
• construction (up 3.3 percent), due to increases in heavy and civil (infrastructure) and residential building construction
• transport, postal, and warehousing (up 2.7 percent), as air transport bounced back from disruptions due to the Chilean volcanic ash cloud in the same quarter last year
• manufacturing (up 0.8 percent), due mainly to an increase in transport equipment manufacturing.

"The good pasture conditions in the first half of the year continued to contribute to economic growth this quarter," national accounts manager Rachael Milicich said.

"We are also now seeing evidence of a rebuild in Canterbury following the earthquakes."

Economic activity was up 2.0 percent for the year ended June 2012, the highest annual GDP growth since the 2.5 percent rise for the year ended March 2008. Economic activity for the June 2012 quarter was 2.6 percent higher than activity in the June 2011 quarter.

The expenditure measure of GDP was up 0.3 percent in the June 2012 quarter. The main features of this growth were:

• investment in fixed assets, up 3.1 percent, due to increases in plant, machinery, and equipment, heavy and civil construction, and residential building
• the volume of spending by New Zealand households increased 0.2 percent.

The size of the economy (in current prices) was $205 billion for the year ended June 2012.

See also:  Gross Domestic Product: June 2012 quarter  –  Information release