Stats NZ has a new website.

For new releases go to

www.stats.govt.nz

As we transition to our new site, you'll still find some Stats NZ information here on this archive site.

  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+
Gross Domestic Product: September 2014 quarter
Embargoed until 10:45am  –  18 December 2014
Commentary

This gross domestic product (GDP) release is the first under new international standards. It also updates the information on the structure of the economy that we use to combine the lower-level volume series. In addition, it updates the year we use to express the volume series from 1996 to 2010.

Preview of 2014 national accounts improvements has more information about the changes.

See data quality and revisions for more detail.

New Zealand economy grows 1.0 percent

 

Image.

 

                                                    Note: Seasonally adjusted chain-volume series expressed in 2009/2010 prices.

Expenditure on GDP

 

Image.

 

Note: The expenditure and production measures of GDP are conceptually the same, but use different data sources, so can differ in practice. The production measure of GDP measures the volume of goods and services produced in the economy, while the expenditure measure shows how these goods and services were used. While the production-based and expenditure-based measures are both official series, the production-based measure historically shows less volatility and is the preferred series for the quarter-on-quarter changes.

                                        Note: Seasonally adjusted chain-volume series expressed in 2009/2010 prices.  

Primary industries lead the increase

Growth in the primary industries was up 5.8 percent in the September 2014 quarter. This is some of the strongest growth since September 1999. The increase was due to large increases in agriculture and in mining, but these were partly offset by a decrease in forestry.

The 4.7 percent increase in agriculture follows three quarters of decline. Milk production, which had a good start to the new season, drove the increase. Sheep, beef cattle, and lamb production also increased.

                                  Note: Seasonally adjusted chain-volume series expressed in 2009/2010 prices. 

 

Mining activity was up 8.0 percent. This is the highest quarterly growth since September 2009. The rise was due to increases in exploration activity, and oil and gas extraction. The increase in exploration led to higher investment in intangible fixed assets, which also include software and research and development.

                                Note: Seasonally adjusted chain-volume series expressed in 2009/2010 prices.

Partly offsetting the increases in agriculture and mining, forestry decreased 4.0 percent. This is the third consecutive quarterly fall. Exports of forestry primary products also fell (down 14.5 percent).

Machinery and equipment drives manufacturing rise

Manufacturing activity increased 2.0 percent in the September 2014 quarter. This was largely due to increases in transport equipment, machinery and equipment manufacturing; and metal product manufacturing. Metal product manufacturing is at its highest level since the September 2008 quarter. Non-metallic mineral manufacturing; and petroleum, chemical, polymer, and rubber product manufacturing also grew. Non-metallic mineral product manufacturing (includes glass, concrete, and ceramics) has now reached its highest level since the series began in 1987.

Graph, Manufacturing, change from June 2014 quarter.

These increases in manufacturing activity were reflected in increases in investment. Investment in plant, machinery, and equipment grew 9.3 percent, the highest quarterly growth since June 2012, while investment in transport equipment grew 16.1 percent.

 

Household spending grows

Household consumption spending increased 1.5 percent in the September 2014 quarter. This is the highest growth rate since the September 2011 quarter. The increase was due to higher spending on durables, which was up 4.0 percent. It was the biggest quarterly increase in durables since the March 2007 quarter, before the global financial crisis. The increase in durables was mostly due to higher spending on used motor vehicles, furniture, and floor coverings.

                              Note: Seasonally adjusted chain-volume series expressed in 2009/2010 prices.

Household spending on non-durables increased 1.7 percent, due to fruit and vegetables, grocery food, and alcoholic beverages. Household spending on services increased 0.8 percent, due to increased spending on restaurant meals and takeaways.

These increases are consistent with retail trade activity, which was up 1.8 percent for the latest quarter. This increase was largely due to furniture, hardware, department stores, and supermarket retailing. Accommodation and food services also had increased activity (up 1.4 percent). An increase in food and beverage services was partly offset by a decrease in accommodation.

Services growth mixed

Overall, the service industries grew 0.3 percent in the September 2014 quarter. The biggest increases were in retail trade and accommodation (up 1.7 percent), and information media and telecommunications (up 3.5 percent). The rise in information media and telecommunications was the highest quarterly growth since the September 2012 quarter. There were also increases to health care and social assistance (up 1.6 percent), financial and insurance services (up 1.1 percent), and public administration and safety (up 1.4 percent).

Graph, Service industries, change from June 2014 quarter.

Partly offsetting these increases were decreases for business services (down 2.0 percent), and transport, postal, and warehousing (down 2.6 percent), driven by lower activity in transport support services.

The fall in business services follows 4.1 percent growth in the June 2014 quarter, and was mostly due to administrative and support services, which was down 6.4 percent. This industry includes areas such as employment services, building cleaning, and pest control services. Professional, scientific, and technical services also declined (down 0.7 percent).

                           Note: Seasonally adjusted chain-volume series expressed in 2009/2010 prices.

Real gross national disposable income

Real gross national disposable income (RGNDI), which measures the real purchasing power of New Zealand's disposable income, grew 0.5 percent in the September 2014 quarter, the ninth consecutive increase. The merchandise terms of trade fell 4.4 percent in this quarter, due to export prices falling by more than import prices. The decline in the terms of trade for the September 2014 quarter resulted in RGNDI growth being lower than GDP growth.

RGNDI increased 6.2 percent for the September 2014 year, compared with a 2.9 percent increase in GDP over the same period.

See Overseas Trade Indexes (Prices): September 2014 quarter (provisional) for more information.

See definitions for more information about RGNDI.

                                                 Note: Actual chain-volume series expressed in 2009/2010 prices.                                

For more detailed data see the Excel tables in the 'Downloads' box.

  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+
Top
  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+