New Zealand Dollar Unimpressed by Upbeat GDP Data
- Quarter-over-quarter GDP grew 1.1%, better than expected
- Year-over-year GDP grew 3.5%in the third quarter of 2016
- Business services, manufacturing and households led growth
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The New Zealand Dollar spiked momentarily following the release of the country’s third quarter GDP data but it quickly returned to pre-event levels. Quarterly growth was upbeat at 1.1 percent, better than expectations for 0.7 percent. Year-over-year, GDP grew 3.5 percent, missing analyst expectations for 3.6 percent growth.
Growth over the reporting period was benefited by a 2 percent increase in business services and a 3.7 percent increase in transportation. Manufacturing and construction also saw strength, increasing by 1.2 and 2.1 percent respectively. The data released by New Zealand’s statistics agency noted that 13 of the 16 GDP industries saw growth over the reporting period.
Gross domestic expenditures also grew 1.4 percent, benefiting from a 1.6 percent increase in fixed asset investments such as real estate. Household consumption, which accounts for $150 billion of the $255 billion economy, increased by 1.6 percent. Imports increased 1.2 percent and were accompanied by a 0.7 percent decrease in exports.
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