24 September 2004
Gross Domestic Product: June 2004 quarter
Economic Activity Continues to Rise
Economic activity increased 0.9 percent in the June 2004 quarter, according to Statistics New Zealand. This follows
increases of 2.1 and 0.9 percent in the March 2004 and December 2003 quarters, respectively. In the year ended June
2004, the economy grew 4.4 percent, up from the 4.1 percent increase in the June 2003 year.
Internal demand rose 2.2 percent in the June 2004 quarter. Household spending remained at high levels and grew by a
further 0.3 percent, following the strong 2.6 percent increase in the previous quarter. Investment in residential
housing was also maintained, rising 6.6 percent to be 13.0 percent higher for the June year. Business investment
increased as well this quarter – investment in fixed assets was up 5.3 percent and there was a further build-up in
inventories. External demand was also up. Export volumes lifted 2.9 percent, with goods up 1.6 percent and services up
7.5 percent. The increase in service exports largely reflects a strong rise in in-bound tourism spending.
Much of the increase in internal demand was met by imports, which were up 6.7 percent. Merchandise imports rose 9.0
percent, with major contributions from transport equipment (up 16.0 percent) and machinery and electrical equipment (up
9.1 percent). Imports of services fell because the increased spending by New Zealanders travelling abroad was more than
offset by falls in other imported services.
Industry production was mixed this quarter. Growth continued in the service industries (up 0.7 percent), with wholesale
trade and the transport and communication group the main contributors to the increase. Activity in goods-producing
industries showed little change, with the lift in construction activity (up 6.6 percent) mostly offset by a decline in
manufacturing (down 1.9 percent). Although manufacturing sales were up for the quarter, much of this was met from
finished goods inventory, and overall production fell. Activity in primary industries decreased 0.5 percent.
The expenditure-based measure of gross domestic product (GDP), released concurrently with the production-based measure,
recorded a 1.1 percent increase for the June 2004 quarter compared with the March 2004 quarter.
Brian Pink Government Statistician
ENDS