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Stink bugs affect spending

The discovery of stink bugs in car shipments earlier this year has resulted in a fall in spending on passenger vehicles, reflecting the flat household spending across the quarter.
Posted on 21 June, 2018
Stink bugs affect spending

The discovery of stink bugs in car shipments earlier this year has resulted in a fall in spending on new and used passenger vehicles, which reflects the flat household spending across the March 2018 quarter.

Household spending was flat in the March 2018 quarter, following a 1.2 percent rise in the December 2017 quarter. Up until the March 2018 quarter, household spending had been growing every quarter since September 2012.

“Household spending on services was held back by reduced spending on second-hand vehicles, petrol, and clothing,” said national accounts senior manager Gary Dunnet. 

“The discovery of stink bugs in car shipments during the quarter has reduced the volume of cars available for sale.”

The value of passenger vehicle imports fell by 4.6 per cent in the March 2018 quarter, following an increase of 1.9 per cent in the December quarter. 

Despite the fall in household spending, gross domestic product (GDP) increased by 0.5 per cent in the March 2018, according to the Stats NZ. 

“The service industries continue to show growth, led by business services and telecommunication services,” said Dunnet. “At the industry level, 13 out of 16 industries increased this quarter.”

The service industries were up 0.6 per cent in the March 2018 quarter, down from a 1.1 per cent increase in the December 2017 quarter. 

An increase in manufacturing was offset by a fall in construction activity, resulting in a flat quarter for the goods-producing industries. 

The primary industries were up 0.6 per cent, rebounding slightly from a 2.6 per cent fall in the previous quarter.