Kiwi economy on the rise
Economic performance, measured by Gross Domestic Product (GDP), grew 0.6 per cent in the September 2017 quarter, following a revised 1.0 per cent growth in the June quarter, Stats NZ said. Household spending was up 0.9 per cent from the previous June quarter. This was driven by spending on durable goods, which includes passenger cars and services. Spending on durable goods increased 2.3 per cent, due to increased spending on clothing, furniture, audio-visual equipment and furnishings. Construction industry was the main instigator of economic growth Construction activity rebounded in the September 2017 quarter, up 3.6 percent after falls in the previous two quarters. Investment in other construction (infrastructure) and residential buildings reported strong increases. Expenditure on road and rail infrastructure were the key drivers of investment in infrastructure, which experienced its strongest increase since 2007. “Construction activity recovered this quarter, unwinding the previous two quarterly falls,” national accounts senior manager Gary Dunnet said. “This reflected higher construction-related investment, with investment in infrastructure and residential buildings also reporting strong increases.” Services Industry Service industries continued to grow steadily, up 0.6 percent in the September 2017 quarter. Industries that contributed most to this growth were health care and residential care; business services; and arts, recreation and other services. GDP per capita up over the quarter GDP per capita was up 0.2 percent in the September 2017 quarter, after a revised 0.5 percent growth in the June 2017 quarter. For the year ended September 2017, GDP per capita was up 0.8 percent.