NZ: Economy expanded at a slower than expected pace in Q1 - TDS

The NZ economy expanded at a slower pace than expected in Q1, rising +0.5%/q from prior’s quarter +0.4%, when market was expecting a +0.7%/q growth, explains the analysis team at TDS.

Key Quotes

“Weakness from building activity and mixed results from the service sector dampened the boost from higher dairy production. Private consumption grew by +1.2%/q and contributed a significant +0.8pts to growth. Exports fell by –0.4% from lower dairy exports while imports rose +1.3% from higher consumption of goods and passenger vehicles. This resulted in net exports cutting –0.6pts from GDP growth. On an annual basis, Q1 GDP rose +2.5%/y as compared to prior’s quarter growth of +2.7%/y.”