Embargoed until 10:45am – 13 February 2008
Construction and machinery drive up CGPI
The Capital Goods Price Index (CGPI) rose 0.8 percent in the December 2007 quarter, Statistics New Zealand said today.
Higher construction prices for houses and machinery prices were the main contributors to the rise. Five of the six asset
groups in the CGPI rose in this quarter, while the transport equipment index continued to fall.
The residential buildings index made the most significant upward contribution to the CGPI, rising 1.2 percent in the
December 2007 quarter. The increase was mainly due to higher construction prices for new houses driven by higher prices
for construction components, increased subcontractors’ charges and higher prices for fittings. In the year to the
December 2007 quarter, the residential buildings index rose 5.1 percent.
Another upward contribution to the CGPI index came from the plant, machinery and equipment index, which rose 0.6 percent
in the December 2007 quarter. The main reasons for this rise were higher suppliers' prices for printing machinery and
parts, and electrical insulator materials. In the year to the December 2007 quarter, the plant, machinery and equipment
index rose 0.4 percent.
The transport equipment index fell 0.3 percent in the December 2007 quarter, its second consecutive quarterly fall.
Respondents commonly cited the adjustment to profit margin as the main reason for lower prices for cars (1600cc and
over), which contributed to the index decrease.
In the year to the December 2007 quarter, the CGPI rose 2.3 percent. This followed a rise of 4.1 percent and 2.9 percent
in the years to the December 2006 and December 2005 quarters, respectively.
Geoff Bascand
Government Statistician
13 February 2008
ENDS