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NZ economy grew at slowest pace in five years

Author
Liam Dann,
Section
Business,
Publish Date
Thursday, 20 December 2018, 11:21a.m.
Economic activity: Fergusson container terminal at the Ports of Auckland. New Zealand Herald Photograph
Economic activity: Fergusson container terminal at the Ports of Auckland. New Zealand Herald Photograph

The New Zealand economy slowed sharply in the three months to September 30, new GDP figures show.

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

The growth was the lowest quarterly growth rate since December 2013, StatsNZ said.

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

"Primary industries grew 2.2 per cent, while growth in service industries slowed to 0.5 per cent. The goods-producing industries fell 1.0 per cent, 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 KaikĊura 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," Hollows said.

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

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