— Gary Dunnet, Stats NZ
The New Zealand economy expanded at a weaker-than-initially-anticipated pace in the March quarter amid weak dairy exports and construction activity. Statistics New Zealand reported that New Zealand GDP grew 0.5% in the three-month period to March, following the preceding quarter's increase of 0.4% and falling behind analysts' expectations for a 0.7% expansion. The agriculture sector grew 4.3% over the quarter, the strongest since the Q3 of 2014, supported by rising milk production. The manufacturing sector grew 1%, whereas retail trade and accommodation climbed 1.8% on a quarterly basis in the Q2. Nevertheless, construction activity fell 1%, marking the first contraction since June 2015. Apart from that, transport, postal and warehousing dropped 2%. Exports of goods and services declined 0.4%, with dairy exports plunging 11%. Meanwhile, imports advanced 1.3%, boosted by higher imports of consumption goods and passenger. Consumer spending climbed 1.3%, whereas investment in fixed assets jumped 1.2%. On an annual basis, the economy grew 2.5%, compared to the prior quarter's expansion of 2.7%.
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