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New Zealand Economy Grows by 0.2% in June Quarter, Consistent With Westpac Forecast

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The New Zealand economy grew by 0.2% in the June quarter, in line with forecasts, showing that it has managed to maintain stability during the Middle East conflict, though it has suffered some impact, Westpac NZ said in a statement on Thursday.

The economy saw a 2.6% year-on-year growth, surpassing Westpac's 2.4% estimate.

The largest contribution came from construction, which was up 2.7%, with further help from manufacturing, wholesaling, and information and telecommunications, Westpac NZ senior economist Michael Gordon said.

Transport and hospitality recorded the main declines, likely due to the surge in fuel prices.

June quarter results were a little weaker in the details than expected, as the non-additive balancing item knocked around 0.2 percentage points off growth, below the forecast of 0.3 percentage points, Gordon added.

There were also softer-than-expected results in agriculture, transport and administrative services, but surprisingly large gains in healthcare and central government administration.

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