New Zealand GDP Rises 0.9% On Quarter

(RTTNews) - New Zealand's gross domestic product added 0.9 percent on quarter in the fourth quarter of 2013, Statistics New Zealand said on Thursday.

That was in line with expectations and slowing from 1.4 percent in the third quarter.

Manufacturing activity gained 2.1 percent, driven by increases in food, beverage, and tobacco, and machinery and equipment manufacturing. Manufacturing activity is now at its highest level since March 2006, the bureau said.

Dairy farming and dairy product manufacturing both fell this quarter, after strong increases last quarter, when production rebounded from the drought earlier in 2013.

"While dairy activity fell this quarter, exports were up strongly, as production from last quarter was sold overseas," national accounts manager Michele Lloyd said in a release accompanying the data.

Wholesale trade, including machinery and equipment wholesaling, increased 3.2 percent in Q4. Strong machinery and equipment sales also led to a 7.5 percent increase in investment in these goods. Investment in plant, machinery, and equipment is now at its highest level since the series began, the bureau said.

The expenditure measure of GDP was up 0.6 percent in the fourth quarter, driven by exports (up 3.1 percent) and household spending on goods and services (up 1.3 percent).

Inventories were run down by NZ$18 million, due to manufacturing inventories being run down. Investment was up by 0.4 percent, driven by an increase in plant, machinery, and equipment.

On a yearly basis, GDP added 2.7 percent - shy of expectations for 3.1 percent and slowing from 3.5 percent in the third quarter.

For all of 2013, expenditure on GDP was up 2.5 percent.

The volume of spending by New Zealand households in Q4 year grew 3.4 percent, driven by a 7.4 percent increase in spending on durable goods. This is the largest annual increase in spending on durable goods since June 2005, the bureau said.