Gross domestic product (GDP) rose by three per cent in the December 2021 quarter, a lower figure than most economists had forecast but ahead of Reserve Bank expectations. 

It followed a 3.6 per cent fall in the September 2021 quarter, Stats NZ said today. 

The figure takes the annual growth rate for 2021 to 5.6 per cent - reflecting a rebound from Covid's impact the previous year. 

The rise in economic activity this quarter came as Covid-19 restrictions loosened, StatsNZ said today. 

This contrasted with the September 2021 quarter, which was marked by the nationwide alert level 4 lockdown in the second half of the quarter. 

The services industries led the increase in December 2021 quarter GDP, driven by business services and the retail trade sub-industry within retail trade, accommodation, and restaurants. 

Economists had anticipated a larger rebound, forecasting a rise of around 3.5 per cent for the quarter. 

All the forecasts came in well above the Reserve Bank which had anticipated just 2.3 per cent growth for the fourth quarter. 

The data prompted little change in the New Zealand dollar, which traded at US68.31c soon after the release. 

"Households spent more on goods and services, particularly on durable items such as clothing and footwear, and electrical appliances," said StatsNZ national accounts – industry & production senior manager Ruvani Ratnayake. 

Goods-producing industries also contributed to the rise in GDP, with manufacturing and construction the main drivers. 

"Higher levels of activity were seen in most manufacturing sub-industries. There were notable rises in transport equipment, machinery, and equipment manufacturing; and metal product manufacturing, with higher exports of related products seen in the quarter," Ratnayake said. 

Increased investment in other construction, residential buildings, and non-residential buildings also contributed to the higher construction activity in the December 2021 quarter.