Gross domestic product: June 2021 quarter – corrected Stats NZ information update

Gross domestic product: June 2021 quarter – corrected

Kia ora koutou

We wish to inform you that we have identified and corrected an error in Gross domestic product: June 2021 quarter. There is no impact on headline quarterly GDP (production measure of GDP), which remains at an increase of 2.8 percent for the June 2021 quarter.

This error primarily affects estimates for the latest quarter (June 2021 quarter) and impacts on the total and some components of Expenditure on GDP. It was caused by some data being missed in the compilation of central government expenditure. This missing data relates to measuring intermediate consumption by government, and also spending related to Managed Isolation and Quarantine (MIQ). In light of this correction, we have also reviewed our estimates of the change in inventories and have revised this downwards.

As a result, expenditure on GDP (in real terms) was reported to have grown 2.6 percent in the June 2021 quarter while the correct figure was 2.7 percent. The headline measure of GDP (in real terms) remains unchanged at an increase of 2.8 percent in the June 2021 quarter. Expenditure on GDP (in nominal terms) was reported to have grown 4.6 percent in the June 2021 quarter, while the correct figure was 4.3 percent.

Variables that have changed as a result of making this correction are as follows:

Lower-level components:

  • Central government expenditure
  • Change in inventories

Higher-level series:

  • General government expenditure
  • Gross capital formation (which includes change in inventories)
  • Gross national expenditure
  • Expenditure on GDP (GDE)
  • GDE per capita
  • Implicit price deflators (IPDS) for general government expenditure and GDE

For further information about the correction please see Corrections made to Expenditure on gross domestic product.

Stats NZ is transparent and open about errors and corrects these as soon as possible. We will review our current processes to help prevent similar errors happening in the future.

We regret this error and apologise for any inconvenience caused.

Please contact us should you have any queries.

Visit our website to read this information update and to download CSV files:

GDP growth dampens in the September quarter – Stats NZ Information Release: Gross domestic product: September 2018 quarter



GDP growth dampens in the September quarter – 20 December 2018

Gross domestic product (GDP) rose 0.3 percent in the September 2018 quarter, down from 1.0 percent in the previous quarter, Stats NZ said today.

The latest growth is the lowest quarterly growth rate since December 2013.

Growth was mixed, with 11 of the 16 industries recording higher production in the September 2018 quarter.

“Primary industries grew 2.2 percent, while growth in service industries slowed to 0.5 percent. The goods-producing industries fell 1.0 percent, dragging down overall growth this quarter,” national accounts senior manager Susan Hollows said.

“Construction activity fell as repair work winds down on roads damaged in the Kaikōura earthquake. However, residential and non-residential construction continued to grow steadily.

“The largest contribution to the downturn in goods-producing industries was manufacturing, with food manufacturing down significantly,” Mrs Hollows said.

Growth in the service industries was widespread but moderate, with no industries having strong movements.

In the primary industries, increases in mining, and forestry and logging led growth. Offsetting the increase in primary industries was a fall in agriculture after rising strongly in the June 2018 quarter.

Mining rose 12 percent, partly recovering from the sharp fall in the June quarter. Oil, gas, and coal production all increased. The Pohokura gas field outage contributed to the large fall in June. The field was still operating at limited capacity, which constrained the bounce back in mining.

GDP per capita was flat in the September 2018 quarter, following an increase of 0.5 percent in the June 2018 quarter.

Annual GDP growth for the year ended September 2018 was 3.0 percent.

The size of the economy in current prices was $291 billion, for the September 2018 year.


Text alternative for Size of the economy (GDP), for the September 2018 year

Diagram shows the relative components of gross domestic expenditure rounded to the nearest $5 billion.

Total size of the economy is $290 billion.

Four components increased GDP, with household spending at $170 billion, government $55 billion, investment $70 billion, and exports $80 billion. A fifth component, imports $80 billion, decreased GDP.

Video

See the Gross domestic product: September 2018 quarter video.

The Government Statistician authorises all statistics and data we publish.

For more information about these statistics:

New Zealand Gross domestic product: June 2018 quarter – Data Sets and Analysis

Gross domestic product: June 2018 quarter – 20 September 2018, 10:45am

Gross domestic product (GDP) provides a snapshot of the performance of the economy. GDP is New Zealand’s official measure of economic growth.

Key facts

  • New Zealand economy grew 1.0 percent in the June 2018 quarter.
  • Broad-based growth, with 15 of 16 industries up.
  • Agriculture, forestry, and fishing was up 4.1 percent.
  • Mining was down 20 percent.
  • Investment spending was down 0.1 percent.
  • GDP per capita was up 0.5 percent.
  • Real gross national disposable income was up 0.8 percent.

New Zealand economy grows 1.0 percent

Economic activity, as measured by gross domestic product (GDP), was up 1.0 percent in the June 2018 quarter. This rise follows a 0.5 percent increase in the March 2018 quarter.

GDP grew 2.7 percent over the year ended June 2018.

Growth across 15 of the 16 industries contributed to the largest quarter-on-quarter increase in two years. A 1.0 percent increase in the service industries was the biggest contributor to growth this quarter. The goods-producing industries were up 0.9 percent following a flat March 2018 quarter. The primary industries grew 0.2 percent, with strong growth in agriculture, forestry, and fishing offset by a significant fall in mining.

Image, GDP industry growth and contribution to growth, June 2018 quarter

Text alternative for Gross domestic product, industry growth and contribution to growth, June 2018 quarter

All service industries up

The 1.0 percent growth in the service industries was broad-based in the June 2018 quarter, with all 11 of the service industries growing. Growth in the retail trade and accommodation, wholesale trade, and transport industries was helped by a combination of increased household spending (up 1.0 percent after a flat March 2018 quarter) and strong international spending.

Industry$(million)Seasonally adjusted chain-volume series expressed in 2009/10 prices.Gross domestic product by industry, change from March 2018 quarterAgriculture, forestry, and fishingMiningManufacturingElectricity, gas, water, and waste servicesConstructionWholesale tradeRetail trade and accommodationTransport, postal, and warehousingInformation, media, and telecommunicationsFinancial and insurance servicesRental, hiring, and real estate servicesBusiness servicesPublic administration and safetyEducation and trainingHealth care and social assistanceArts, recreation, and other services-175-150-125-100-75-50-250255075100125150Stats NZ

Agriculture, forestry, and fishing up, but mining down

Favourable weather conditions boosted milk production, which led to a 4.1 percent increase in agriculture, forestry, and fishing in the June 2018 quarter. The increase in milk production comes after consecutive quarters of favourable rainfall and is reflected by increases to both dairy manufacturing and dairy exports in the June 2018 quarter.

Growth in agriculture, forestry, and fishing was further supported by increases in sheep and beef cattle farming, reflected in higher meat exports for the quarter. Meat prices rose 3.6 percent to reach historically high levels. Horticulture and fruit growing, and forestry were also up in the quarter.

The strong growth in agriculture, forestry, and fishing was offset by a 20 percent drop in mining in the June 2018 quarter. The fall – the largest for the industry since 1989 – resulted from an unplanned outage at New Zealand’s largest natural gas field, the Pohokura field, after a leaking pipeline was discovered in March.

PercentSeasonally adjusted chain-volume series expressed in 2009/10 prices.Mining industry growth rates, June 2012 quarter to June 2018 quarterQuarterly growth (%)Annual growth (%)Jun-12Sep-12Dec-12Mar-13Jun-13Sep-13Dec-13Mar-14Jun-14Sep-14Dec-14Mar-15Jun-15Sep-15Dec-15Mar-16Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17Dec-17Mar-18Jun-18-30-20-1001020Stats NZ

A fall in petroleum and chemical manufacturing partly reflects downstream effects of the Pohokura outage, as reduced gas supply led to Methanex halting their operations. This is in conjunction with an expected drop due to the planned shutdown of the Marsden Point refinery for maintenance.

Goods-producing industries resume growth

Goods-producing industries rose 0.9 percent in the June 2018 quarter as electricity and construction each rebounded from falls in the March 2018 quarter. Electricity generation provided the biggest contribution, with above-average hydro lake levels and greater household consumption powering a 3.7 percent increase.

Total manufacturing rose 0.4 percent, with increased transport equipment manufacturing offsetting the fall in petroleum and chemical product manufacturing.

Food manufacturing rose 0.6 percent, with higher dairy and meat manufacturing held back by a fall in beverage and tobacco manufacturing. The fall in beverage and tobacco manufacturing follows a 9.3 percent rise in the March 2018 quarter after large tobacco imports in the December 2017 quarter.

Investment down 0.1 percent

Overall gross fixed capital formation was down 0.1 percent, and business investment (all investment less residential construction) was down 0.2 percent. Residential construction investment increased 0.5 percent, and telecommunication infrastructure investment helped boost other construction. There were also notable increases in investment in transport equipment and software.

Offsetting these increases was a 1.3 percent fall in plant, machinery and equipment investment. This fall follows six consecutive quarters of increase, with growth for the year ended June 2018 up 13 percent.

GDP per capita

When comparing GDP growth to population change, GDP per capita rose 0.5 percent in the June 2018 quarter. This follows a flat March 2018 quarter. For the year ended June 2018, GDP per capita was up 0.7 percent.

Real purchasing power of New Zealand’s income up 0.8 percent

New Zealand’s ability to buy goods and services from its income improved in the June 2018 quarter. Real gross national disposable income (RGNDI), which measures the real purchasing power of the country’s disposable income, was up 0.8 percent in the quarter.

Annually, RGNDI was up 3.1 percent.

Seasonally adjusted chain-volume series expressed in 2009/10 prices.Real gross national disposable income, quarterly and annual growth rates, June 2012 quarter to June 2018quarterQuarterly growth (%)Annual growth (%)Jun-12Sep-12Dec-12Mar-13Jun-13Sep-13Dec-13Mar-14Jun-14Sep-14Dec-14Mar-15Jun-15Sep-15Dec-15Mar-16Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17Dec-17Mar-18Jun-18-2.502.557.5Stats NZ

With a population increase of 0.4 percent over the June 2018 quarter, RGNDI per capita rose 0.4 percent as our real purchasing power increased by more than the rate of growth in our population. Over the June 2018 year, RGNDI per capita increased 1.1 percent.

RGNDI measures the volumes of goods and services that New Zealand residents have command over while GDP measures economic activity. RGNDI is also affected by changes in the terms of trade, as well as the country’s net investment income and net transfer flows with the rest of the world.

GDP growth of 1.0 percent in the June 2018 quarter, coupled with a 0.6 percent rise in the terms of trade, outweighed a slightly larger net flow of income overseas to produce a 0.8 percent rise in RGNDI. The larger net flow of income overseas was a result of the worsening net transfers flow more than offsetting a small improvement in the net investment income flow.

The terms of trade is the ratio of the price of exports to the price of imports. An increase in the terms of trade occurs when export prices rise by more than import prices and result in fewer exports being needed to pay for a given volume of imports. This means residents can purchase a larger volume of goods and services from the incomes generated from a given level of domestic production.

See Overseas trade indexes (prices and volumes): June 2018 quarter (provisional) for terms of trade export and import price movements

See Balance of payments and international investment position: June 2018 quarter for information on net investment income and transfer flows.

See Real gross national disposable income in DataInfo+ for more information about RGNDI.

International growth comparison – New Zealand compared with trade partners

Percentage changes in GDP – international comparisons
 Country Quarterly percentage change in GDP Change from same quarter previous year
New Zealand 1.0 2.8
Australia 0.9 3.4
 Canada 0.7 1.9
Euro area (19 countries) 0.4 2.1
Japan 0.7 1.3
OECD 0.6 2.5
United Kingdom 0.4 1.3
United States 1.0 2.9

 

See OECD.Stat for GDP data covering other countries. Care should be taken when comparing New Zealand’s GDP figures with those of other countries, as the methodology used varies internationally.

Revisions

We incorporated several revisions in this release. Revisions reflect new or improved data that affect historical results, or changes to the underlying measure. In both cases we aim to better represent the real-life situation of a changing society, economy, and environment.

See DataInfo+ for more information.

Broad-based growth as GDP rises 1 percent in June quarter – 20 September 2018, 10:45am

Broad-based growth as GDP rises 1 percent in June quarter – 20 September 2018, 10:45am

Gross domestic product (GDP) rose 1.0 percent in the June 2018 quarter, up from 0.5 percent last quarter, Stats NZ said today. This is the largest quarterly rise in two years.

Growth was broad-based, with 15 of 16 industries recording higher production. Mining was the only industry to decline, reflecting one-off factors.

“Once again service industries led growth. Goods-producing and primary industries also saw rises this quarter,” national accounts senior manager Susan Hollows said.

The largest contribution to growth came from agriculture, up 4.2 percent.

Growth of 1.0 percent in the service industries was broad-based, with all industries recording a lift.

“The real strength of services this quarter lay in a consistent performance across a range of industries,” Mrs Hollows explained.

Retail trade and accommodation, wholesale, and transport industries all rose, reflecting higher household spending.

Within primary industries, agriculture’s strong performance was supported by growth in forestry. A 20 percent fall in mining – its largest fall in 29 years – provided a strong offset.

“Quarterly growth in agriculture was the strongest since September 2014, with the dairy season ending well after earlier weather disruptions,” Mrs Hollows said. “An unplanned shutdown stalled gas production, which led to the fall in mining as well as some offset to manufacturing activity.”

Manufacturing was further affected by lower petroleum and chemical product manufacturing following a planned shutdown at Marsden Point refinery.

Growth in electricity generation was the largest in nine years, with wet and cold weather likely to have influenced both production and demand.

Text alternative for Gross domestic product, industry growth and contribution to growth, June 2018 quarter

GDP per capita was up 0.5 percent in the June 2018 quarter, following a flat quarter in March.

Annual GDP growth for the year ended June 2018 was 2.7 percent.

The size of the economy in current prices was $289 billion.

PercentSeasonally adjusted chain-volume series expressed in 2009/10 prices.Gross domestic product, quarterly and annual growth rates, June 2012 quarter to June 2018 quarterQuarterly growth (%)Annual growth (%)Jun-12Sep-12Dec-12Mar-13Jun-13Sep-13Dec-13Mar-14Jun-14Sep-14Dec-14Mar-15Jun-15Sep-15Dec-15Mar-16Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17Dec-17Mar-18Jun-18024-26Stats NZ

Sep-14
● Quarterly growth (%): 1.3
● Annual growth (%): 2.8

Text alternative for Gross domestic product, industry growth and contribution to growth, June 2018 quarter

Diagram has a column graph, pie chart, and bar chart showing growth, share of the economy, and contribution to growth in the June 2018 quarter of the primary, goods-producing, and services industries.

Column chart shows the primary industry grew 0.2 percent, goods-producing 0.9 percent, and services 1.0 percent.

Pie chart shows that services industries make up about two-thirds of GDP, goods-producing about one-fifth and primary about one-twentieth.

Bar chart shows industry contribution to the GDP growth rate: primary 0.0 percentage points, goods-producing 0.2 percentage points, and services 0.7 percentage points.

GDP growth eases slightly – Stats NZ Media and Information Release: Gross domestic product: March 2018 quarter

GDP growth eases slightly – 21 June 2018

Gross domestic product (GDP) rose 0.5 percent in the March 2018 quarter, Stats NZ said today. This followed a 0.6 percent increase in the December 2017 quarter. Growth in service industries more than offset a fall in construction activity.

“The service industries continue to show growth, led by business services and telecommunication services,” national accounts senior manager Gary Dunnet said. “At the industry level, 13 out of 16 industries increased this quarter.”

Agriculture recovered in the March 2018 quarter, up 0.4 percent, following a 2.8 percent fall last quarter. A rebound in milk production contributed the most to the rise, largely due to improved weather conditions, after hot, dry weather in the December 2017 quarter.

Construction cooled off, down 1.0 percent in the quarter but still up 1.4 percent for the year.

Household spending was flat in March, after increasing 1.2 percent last quarter. This movement aligns with retail industry production, which rose just 0.3 percent this quarter.

“Household spending on services was held back by reduced spending on second-hand vehicles, petrol, and clothing,” Mr Dunnet said. “The discovery of stink bugs in car shipments during the quarter has reduced the volume of cars available for sale.”

Growth in business investment, particularly in plant, machinery, and equipment, was supported by an increase in the import of capital goods. Exports fell across a wide range of goods, while export services were buoyed by tourism.

GDP per capita was flat this quarter, following a 0.1 percent increase in the December 2017 quarter.

Annual GDP growth for the year ended March 2018 was 2.7 percent.

The size of the economy in current prices was $286 billion.



Video

View our Gross domestic product: March 2018 quarter video.

For more information about these statistics:

                                                                 Tables (Excel)      

 (See attached file: gross-domestic-product-march-2018-quarter.xlsx)(See attached file: gross-domestic-product-march-2018-quarter-supplementary-tables.xlsx)

New Zealand GDP rises on strength in services

Source: Statistics New Zealand

“Growth was widespread across many service industries, with business services, and rental hiring and real estate services providing momentum,” national accounts senior manager Gary Dunnet said. “Retail trade and wholesale trade were also key contributors to growth this quarter.”

GDP grew 0.6% in the Dec 2017 quarter

Hot, dry weather appeared to have a negative impact this quarter on agriculture production, which fell 2.7 percent. Falling milk production was reflected in lower dairy manufacturing and dairy exports. In contrast, meat manufacturing was up, keeping pace with export demand for meat products.

Expenditure on GDP rose, underpinned by household spending and investment. Household spending was up 1.2 percent, influenced by people eating out more and spending more on groceries and alcohol. This was reflected in the retail trade and accommodation industry, with activity in food and beverage services and supermarkets increasing.

“Imports of capital goods such as aircrafts, factory equipment, and ICT increased considerably this quarter,” Mr Dunnet said. “This was reflected in a 2.1 percent rise in investment of fixed assets.”

GDP per capita increased 0.1 percent this quarter, following a 0.2 percent increase in the September 2017 quarter.

Annual GDP growth for the year ended December 2017 was 2.9 percent. The size of the economy in current prices was $283 billion.

Size of the economy (GDP) $285 billion