First quarter economic growth data from NZ comes in bang on line with estimates
0.5 % q/q
- expected 0.5% q/q, prior 0.6%
2.7 % y/y
- expected 2.7% y/y, also down a little from Q4 2.9%
There was plenty of chatter about risks to the downside, so coming in on line is a win! (I guess).
From StatsNZ (bolding mine):
- "The service industries continue to show growth, led by business services and telecommunication services,"
- "At the industry level, 13 out of 16 industries increased this quarter."
- Agriculture recovered in the March 2018 quarter, up 0.4 percent, following a 2.8 percent fall last quarter. A rebound in milk production contributed the most to the rise, largely due to improved weather conditions, after hot, dry weather in the December 2017 quarter.
- Construction cooled off, down 1.0 percent in the quarter but still up 1.4 percent for the year.
- Household spending was flat in March, after increasing 1.2 percent last quarter. This movement aligns with retail industry production, which rose just 0.3 percent this quarter.
- "Household spending on services was held back by reduced spending on second-hand vehicles, petrol, and clothing," Mr Dunnet said. "The discovery of stink bugs in car shipments during the quarter has reduced the volume of cars available for sale."
- Growth in business investment, particularly in plant, machinery, and equipment, was supported by an increase in the import of capital goods.
- Exports fell across a wide range of goods, while export services were buoyed by tourism.
- GDP per capita was flat this quarter, following a 0.1 percent increase in the December 2017 quarter.
So, Q1 in the books, and just trundling along. Early indications for the second quarter are for a rebound in growth.
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For background:
