September 17th, 2024
New Zealand's economic activity registered a dip of 0.1% in the March 2023 quarter, according to the latest figures from Stats NZ. This marks a continuation of the downward trend observed in the December 2022 quarter, where the GDP fell by 0.7%.
"The December 2022 and March 2023 quarter declines follow growth in the June and September 2022 quarters," said Jason Attewell, General Manager of Economic and Environmental Insights at Stats NZ in a media release today.
The March 2023 quarter saw varied outcomes across industry sectors, with more than half experiencing a decline. Notably, the business services sector represented the largest downward driver, decreasing by 3.5%. This decline was partially offset by a 2.7% rise in information media and telecommunications over the same period.
"Management consulting, advertising, scientific, and engineering design services drove the fall in business services," Attewell said.
The impact of Cyclones Hale and Gabrielle, coupled with teachers’ strikes, had significant effects on the March 2023 quarter.
"The adverse weather events caused by the cyclones contributed to falls in horticulture and transport support services, as well as disrupted education services," Attewell said.
The reduced number of teaching days due to the strikes led to downturns in primary and secondary education services.
The expenditure measure of GDP saw a 0.2% decrease this quarter, driven by business inventory run downs and a drop in service exports. However, this was partially counteracted by a 2.4% increase in household consumption expenditure and 2.0% growth in investment in fixed assets.
The boost in household expenditure was primarily due to New Zealanders increasing spending on international travel. Conversely, there was a reduction in household spending on goods, particularly grocery food.