New Zealand GDP Expands 0.9% In Q4

(RTTNews) - New Zealand's gross domestic product gained 0.9 percent on quarter in the fourth quarter of 2015, Statistics New Zealand said on Thursday.

That beat forecasts for an increase of 0.7 percent following the 0.9 percent increase in the third quarter.

Individually, business services were up 1.5 percent due to growth in advertising, market research, and management services. Construction was up 2.5 percent.

"The service industries grew 0.8 percent overall," national accounts senior manager Gary Dunnet said. "Business services in particular, posted a strong increase, as well as retail trade and accommodation."

The strong performance of the service industries this quarter was offset by falls in the agriculture and manufacturing sectors.

The growth in the service sector was reflected in increased household spending on services, which was up 1.0 percent. There was higher spending on restaurant and ready-to-eat meals, accommodation, and international air passenger services. The increase in household spending contributed to the 1.1 percent increase in the expenditure measure of GDP.

Business investment decreased 2.6 percent, after a strong increase in the September 2015 quarter. Although construction-related investment increased, this was offset by lower investment in plant, machinery, and equipment; and transport equipment.

"While we've seen 0.9 percent growth in both the December and September quarters, growth for the year ended December 2015 edged down to 2.5 percent," Dunnet said. "This reflects the slower first half of 2015."

The size of the economy in current prices was NZ$246 billion for the year ended December 2015.

On a yearly basis, GDP climbed 2.3 percent - again beating expectations for 2.1 percent and unchanged from the three months prior.