FINWIRES · TerminalLIVE
FINWIRES

New Zealand Economy Expands 0.8% in March Quarter

By

New Zealand's economy expanded 0.8% in the March quarter, following a 0.5% expansion in the previous quarter, Stats NZ data showed Thursday.

The consensus forecast is for an expansion of 0.9%, according to Trading Economics.

Nine out of 16 industries recorded higher economic activity in the March quarter, with manufacturing leading gross domestic product (GDP) growth at 1.9%, followed by business services and wholesale trade, according to Stats NZ.

"New Zealand's manufacturing industry is a large and diverse sector of the economy, making up around 8% of GDP," general manager and macroeconomic spokesperson Jason Attewell said.

Mining was the largest negative contributor to GDP in the March quarter, falling nearly 12%, mainly due to a decline in oil and gas extraction, while construction fell by 1% in the March quarter.

"Declines in both residential and non-residential building contributed to the overall fall in construction activity in this period," Attewell said.

GDP per capita rose 0.5% in the March quarter.

The expenditure measure of GDP rose 1% in the March quarter, following a 0.4% increase in the previous quarter, with imports and exports volume rising 4.2% and 3.1%, respectively.

Household consumption expenditure increased 0.5% in the March quarter, following a 0.1% decline in the previous quarter, driven by higher spending on audio-visual equipment, used motor vehicles, and grocery foods.

Gross fixed capital formation rose 2% in the March quarter, driven by higher business investment in fixed assets, particularly plant, machinery, and equipment.

In the year ended March, GDP rose 0.8% compared with the year-earlier period.

Related Articles

International

Australia Must Prepare for More Shock-Prone Financial System Amid Strained Geopolitical Climate, Central Bank Assistant Governor Jones Says

Australia must be ready to manage a financial system that is more prone to shocks, as the currently strained geopolitical environment carries broad implications ranging from the resilience of key payments infrastructure to the fragmentation of cross-border capital flows, Reserve Bank of Australia Assistant Governor Brad Jones said in a Wednesday speech.Speaking at an Australian Banking Association conference in Melbourne, Jones said some of the most consequential developments in the global financial system's modern history were the result of geopolitical unrest.Geopolitical shocks have a long history of hampering bond and stock markets by disrupting supply chains, and the associated risk has long been part of contingency planning for the payment system, which is "an issue of particular relevance today," Jones said.At the same time, the financial system also has a record of shaping geopolitical developments, he said, pointing to the role of the British bond market in halting Napoleon's march across Europe early in the 19th century.As challenges to international cohesion have resurfaced, financial and economic linkages are again being reshaped by strategic considerations, with some indicators suggesting that a fracturing is underway "on a scale and with a speed unseen in eight decades," the central bank official said."All of this brings us to the old aphorism - we must take the world as it is, not as we wish it to be," Jones said. "It is in this context that policy makers are dialing up efforts to ensure the financial system can weather a more challenging risk environment."While the composition of international asset exposures for Australian banks is somewhat less troublesome than in other countries, the high foreign ownership share of the country's fixed-income markets means "the Australian financial system will not be immune from shocks abroad," Jones said.

ASX 200
International

Australia's Leading Index Inches Up in May, Remains Weak

The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index inched up slightly to negative 0.17% in May from negative 0.18% in April, but remains weak, Westpac said in a report on Tuesday.The index indicates the expected pace of economic activity compared with trend levels three to nine months into the future.The Australian economy is experiencing a noticeable loss of momentum, as indicated by the March quarter national accounts showing a softening in activity, apart from increased investment in data centers.The May index suggests that the subdued growth will likely persist into the latter half of the year and into early 2027.

ASX 200
International

Singapore's Trade Surplus Narrows to SG$5.57 Billion in May

Singapore's merchandise trade surplus contracted to SG$5.57 billion in May from SG$13.1 billion in the prior month, according to data from Enterprise Singapore released on Wednesday.The latest figure, however, beat Trading Economics' forecast of SG$7 billion in surplus.Total merchandise exports increased 39.7% year over year, faster than the 33.0% growth recorded in the previous month.Meanwhile, total merchandise imports rose 43.6% year over year, compared with a 34.5% growth in the preceding month.

^STI