The New Zealand economy showed expansion in the June quarter despite the Middle East conflict and continued pressure on global oil prices.
New Zealand's economy expanded 0.2% in the June quarter, following a 0.9% expansion in the previous quarter, with the GDP per capita rising 0.1%.
Nine out of 16 industries recorded higher economic activity in the June quarter, with construction leading gross domestic product growth at 2.7% while transport, postal, and warehousing were the largest negative contributors, declining 1.7%.
The expenditure measure of GDP rose 0.4% in the June quarter, following a 1.1% increase in the previous quarter, as export volumes rose 3.3% while import volumes fell 0.8%.
Westpac, which also expected 0.2% quarterly growth, said the data was a little softer in the details than expected, as the non-additive balancing item and agriculture, transport and administrative services showed lower growth than anticipated.
ANZ, which expected a 0.1% quarterly rise, said that data suggests that the economy has grown at a "reasonable pace" in the months following June, but recovery will likely be "patchy" due to ongoing offshore volatility.
The financial services firm expects the Reserve Bank of New Zealand to hike interest rates by 25 basis points in October as it believes that global developments since the September meeting suggest that a sooner hike would be more prudent.
