Economic activity expanded 0.8% in the June quarter from March, led by a rebound in activity in the South Island, according to the National Bank's Regional Trends Survey.
The expansion followed a 0.1% drop in activity in the March quarter as measured by the survey - another sign the domestic recovery was strengthening prior to the latest turmoil on global financial markets. See yesterday's article, Economy had momentum before last week's volatility, meaning NZ might just fumble through current global mess, BNZ's Toplis says.
GDP measured by Statistics New Zealand showed nationwide economic output expanded 0.8% in the March quarter, with this latest National Bank survey suggesting that rate of growth may be built upon when June quarter figures are released on September 22.
"A lift in economic activity was measured in all but two of the regions in the June quarter. Canterbury recorded a 1.9 percent rebound in activity from last quarter’s 2.5 percent contraction. Four other regions also recorded a rebound in activity from the preceding quarter. Southland recorded the largest quarterly rise in June, up 2.1 percent, and Waikato a close second, up 2.0 percent. Gisborne and Wellington were the two regions to record a drop in economic activity in June," Natoinal Bank economist Steve Edwards said in a release.
"The nationwide measure of economic activity increased 0.8 percent, with the South Island economy rebounding 1.5 percent from a similarly sized decline in March. The North Island’s economy expanded 0.5 percent, but to its credit it didn’t record a contraction in March," Edwards said.
"Annual economic growth was weaker in every region. Five regions recorded a negative annual rate of economic growth in the year to June. This is a net slowing from March, when Canterbury was the only region with a negative rate of growth. Northland’s economy recorded the lowest year-on-year rate of change, dropping 1.2 percent. Canterbury’s economy was 1 percent weaker in the 12 months to June, versus the same period a year earlier," he said.
"The nationwide rate of economic growth was 0.6 percent in the year to June. The economy of the North Island was 0.8 percent larger than a year earlier, while the South Island’s economy contracted 0.1 percent."
7 Comments
Wolly suggested that the entire viticultural industry was about to plummet off the cliff edge . Seems a waste not to crush a few tonnes of grapes when it hits the bottom .
... unless he meant that the industry was already at the bottom of the cliff , at the lowest edge , and about to ka-zoooooom back up ?
Bugger , I've had altogether too much Oude Kaap , and am talking bigger bollocks than usual ........ hic . .. Ahhhhhh !
"Having dodged a credit rating downgrade in May, New Zealand is still at risk if it doesn't sort out its ballooning deficits and mounting government debt, Moody's Investors Service says."
http://www.stuff.co.nz/the-press/business/5460110/Moodys-still-sees-NZ-rating-risk
Quick John...get some wine and cheese in...the moody at Moodys feel in need of a free party.
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