Gross domestic product rose 0.4 per cent in the December 2016 quarter, following a revised increase of 0.8 per cent in the September 2016 quarter.

'Growth in service industries was partly offset by weaker activity in primary industries also flowing through into manufacturing,” says Statistics NZ national accounts senior manager Gary Dunnet.

'At an industry level, growth was a mixed bag, with only half of our 16 industries rising.”

Service industries continued to grow, increasing 0.7 per cent in the December 2016 quarter. The main drivers were business services, arts, recreation, and other services, and health care and residential care.

Agriculture fell 0.6 per cent due to lower milk production. This, coupled with falls in forestry and mining, were reflected in lower manufacturing activity and lower primary exports.

Manufacturing fell 1.6 per cent, driven by falls in food, beverage, and tobacco manufacturing, and in transport equipment, machinery and equipment manufacturing, while exports fell due to lower exports of dairy products, metal products, machinery and equipment, crude oil, and logs and timber.

Household spending growth tapered off this quarter, increasing 0.4 per cent after two consecutive quarters of strong growth. While there was a smaller increase in household spending, tourist spending was strong, up 5.1 per cent.

GDP per capita fell 0.2 per cent this quarter, following increases of 0.3 per cent in the June and September quarters.

Annual GDP growth for the year ended December 2016 increased to 3.1 per cent, and the size of the economy in current prices was $261 billion.

For more information visit the Statistics NZ website at:www.stats.govt.nz

KEY FACTS:

The main movements by industry were:

• Services was the main driver of GDP growth this quarter.
• Business services was up 1.7 per cent, due to computer system design and related services and advertising, market research and management services.
• Arts, recreation, and other services, was up 3.8 per cent, with repair and maintenance services the largest contributor.
• Agriculture was down 0.6 per cent, due to falling milk production.
• Manufacturing was down 1.6 per cent, due to decreased food, beverage, and tobacco product manufacturing.
• Expenditure on gross domestic product grew 0.2 per cent in the December 2016 quarter.

The main movements in GDE were:

• Household consumption expenditure was up 0.4 per cent, driven by spending on services and durable goods.
• Investment in fixed assets was up 0.7 per cent, due to increased investment in plant, machinery and equipment.
• Inventories built up $906 million, due to distribution and manufacturing inventories.
• Exports of goods and services was down 3.8 per cent, due to exports of dairy products.
• Imports of goods and services was up 1.9 per cent, due to imports of machinery and plant.