New Zealand: GDP growth accelerates in Q3
December 21, 2015
In the third quarter of 2015, GDP increased a seasonally-adjusted 0.9% over the previous quarter, which marked anacceleration over the 0.3% expansion observed in Q2 and marked the highest reading since Q4 2014. The print slightly overshot market expectations of a 0.8% increase. Compared to the same quarter of the previous year, GDP increased 2.3% in Q3, which marked the softest increase since Q4 2013 (Q2: +2.4% year-on-year).
Q3’s acceleration was mainly driven by significant improvements in manufacturing and services industries. Goods producing industries increased from Q2’s 0.2% rise to 0.5% growth in Q3. Manufacturing industries rose 2.9% in Q3 (Q2: -0.5% quarter-on-quarter) and construction activities swung from Q2’s 0.5% rise to a 3.0% fall in Q3. Electricity, gas and water decreased 0.7% in Q3 (Q2: +2.0% qoq). Growth in services accelerated from 0.1% in Q2 to 0.9% in Q3.
On an expenditure basis, in Q3 GDP grew 1.2% over the previous period, which was above Q2’s 0.7% expansion and marked the highest value since Q1 2014. The print reflected a rebound in the external sector. Total consumption grew 0.4% over the previous quarter, which was below Q2’s 0.7%. Private consumption rose 0.6% (Q2: +0.6%) and government consumption fell 0.5% (Q2: +1.0%). Fixed investment accelerated from its 1.2% rise recorded in Q2 and grew 2.7% in Q3. The external sector rebounded as exports swung from a 0.1% decrease to a 1.9% rise in Q3. In addition, imports fell 2.8% (Q2: +1.7% qoq). Consequently, the external sector’s net contribution to overall economic growth swung from minus 0.6 percentage points in Q2 to plus 1.5 percentage points in Q3.
Author: Eric Denis , Economist