Capital Goods Prices Rise 0.1 Percent
Capital goods prices rose 0.1 percent in the September 2002 quarter compared with the June 2002 quarter, according to
Statistics New Zealand. On an annual basis, the Capital Goods Price Index rose 1.2 percent from the September 2001
quarter to the September 2002 quarter.
In the September 2002 quarter, the most significant contribution to the overall increase of 0.1 percent came from a 0.7
percent increase in the residential buildings index. This index last recorded a fall in the December 1998 quarter, when
it fell 0.1 percent. The non-residential buildings index rose 0.3 percent in the September 2002 quarter.
The index for land improvements increased by 1.5 percent in the September 2002 quarter. The most significant upward
contribution to this index came from the irrigation and land drainage index with an increase of 2.7 percent, mainly due
to higher prices for PVC pipes.
The plant, machinery and equipment index fell by 0.6 percent in the September 2002 quarter. The most significant
downward contribution came from a 6.9 percent fall in the computer machinery index, which fell due to the effects of the
exchange rate and competition in the computer market.
The machinery for mining, quarrying and construction index (down 1.1 percent) and the machinery for food, beverage and
tobacco processing index (down 1.4 percent) also contributed to the fall.
The falls were partly offset by a 1.4 percent increase in the other special purpose machinery index, mainly due to
higher prices for printing machinery.
Brian Pink
Government Statistician