New Zealand GDP Expands 1.0% In Q3

(RTTNews) - New Zealand's gross domestic product jumped 1.0 percent on quarter in the third quarter of 2014, Statistics New Zealand said on Thursday.

That topped forecasts for an increase of 0.7 percent, which would have been unchanged from the previous three months.

The growth was driven by primary industries, which increased 5.8 percent.

"This is some of the strongest growth in primary industries for 15 years," national accounts manager Gary Dunnet said. "Milk production had a good start to the season, while oil exploration, and oil and gas extraction also grew."

The key drivers in the third quarter were agriculture (up 4.7 percent), and mining (up 8.0 percent). In contrast, forestry and logging was down 4.0 percent. Manufacturing activity also grew (2.0 percent), led by increases in metal product manufacturing (up 4.9 percent), and machinery and equipment manufacturing (up 3.7 percent).

"Service industries were mixed this quarter, with rises in telecommunications and retail being offset by falls in transport and business services," Dunnet said.

On a yearly basis, GDP added 2.9 percent - below expectations for 3.3 percent and down from the downwardly revised 3.2 percent in the second quarter, (originally 3.9 percent).

The expenditure measure of GDP rose 1.3 percent in the third quarter. Household spending was up 1.5 percent, driven by a 4.0 percent increase in durables - including used motor vehicles and furniture.

This is the highest quarterly increase in durables since before the global financial crisis. Investment also increased (3.5 percent), mainly due to increased spending on machinery and transport equipment.

The size of the economy (in current prices) was NZ$237 billion for the year ended September 2014.