New Zealand economic grows 0.6% in third quarter

The New Zealand economy continues to grow despite the challenges it faces. New Zealand’s economy expanded in the third quarter, albeit at a slower pace, as ongoing weak activity in the primary sector offset a strong recovery in construction, service and industries sector.
Gross domestic product expanded 0.6% on quarter in the third quarter of 2017 as construction activity recovered this quarter, unwinding the previous two quarterly falls. This reflected higher construction related investment, with investment in infrastructure and residential buildings also reporting strong increases. Service industries, such as health care and residential care, business services also contributed to growth.
Household spending was up 0.9 percent, driven by spending on durable goods, and services. Spending on durable goods increased 2.3 percent. Household spending on services increased 0.8 percent this quarter, with households spending more on recreational and sports services.
GDP per capita increased 0.2 percent this quarter, following a 0.5 percent increase in the June quarter. Annual GDP growth for the year ended September 2017 was 2.7 percent beating forecasts for 2.3 percent and up from 2.5 percent in Q2.
Noted that GDP in third quarter were the first since the centre-left Labour Party took office in October and suggest it may have to grapple with a slower economy next year.