New Zealand GDP: beats expecations on both sides, q/q 1.0%

New Zealand's GDP printing came in green across the board, with the quarterly figure clocking in at 1.0% (forecast 0.8%, previous 0.5%) while the year-on-year figure eclipsed expectations to print at a sturdy 2.8% (forecast 2.5%, last 2.6%, revised from 2.7%).

Key quotes(source: StatsNZ)

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.

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.

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.

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.