New Zealand Q4 GDP Expands 0.5% On Quarter

(RTTNews) - New Zealand's gross domestic product gained a seasonally adjusted 0.5 percent on quarter in the fourth quarter of 2019, Statistics New Zealand said on Thursday.

That matched expectations and was down from the upwardly revised 0.8 percent gain in the three months prior (originally 0.7 percent).

Service industries grew 0.6 percent on quarter, while growth in primary industries was up 0.5 percent and goods-producing industries grew 0.1 percent.

GDP per capita rose 0.2 percent, while real gross disposable national income was up 1.0 percent.

On a yearly basis, GDP was up 2.3 percent - unchanged from the previous quarter and surpassing expectations for a gain of 1.7 percent.

Seven of the 11 service industries recorded growth in the December 2019 quarter, led by rises in rental, hiring, and real estate services, and public administration and safety.

Increased household spending on durable goods (such as appliances and audio-visual equipment) provided a boost to retail trade. Similarly, increased household spending on services was reflected in growth in both telecommunications, and transport, postal, and warehousing services.

Service industry growth in the quarter was softened by falls in both professional, scientific, and technical services, and financial and insurance services.

Annual growth in the service industries has eased since the December 2016 year, down to 2.1 percent in the December 2019 year.

Primary industries were up 0.5 percent this quarter, driven by a 2.5 percent increase to mining. This growth was tempered by a 1.3 percent decline in agriculture as both livestock and dairy farming saw falls.

Goods-producing industries observed a modest 0.1 percent increase this quarter, led by rises in residential building, construction services, and electricity generation. These increases were offset by a 0.1 percent fall in manufacturing production.