Economic activity was up 0.8 per cent in the December 2009 quarter, following a 0.3 per cent increase in the September 2009 quarter, says Statistics New Zealand.
Today's confirmation of extended economic growth matches most of the economist's forecasts.
Manufacturing activity was up 4.5 per cent, after seven quarters of decline.
The figure means that gross domestic product contracted 1.6 per cent in the year ended December 2009 compared with the year ended December 2008.
By industry, the largest movements in the December 2009 quarter were:
• manufacturing activity, up 4.5 per cent, the first increase after seven consecutive quarters of decline and led by food, beverage, and tobacco manufacturing
• wholesale trade, up 2.7 per cent, also increased after seven consecutive quarters of decline
• retail, accommodation, and restaurants, up 1.7 per cent
• personal, health, and community services, down 1.1 per cent.
"Strong manufacturing activity contributed to growth in the December 2009 quarter," said National Accounts manager Rachael Milicich.
"This growth reflects both increased demand and the need to replenish manufacturing inventories that have recently been run down."
The expenditure measure of GDP, which is released concurrently with the production measure and is described as "conceptually the same", was also up 0.8 per cent in the December 2009 quarter.
While the production measure of GDP shows the volume of goods and services produced by the economy, the expenditure measure shows how those goods and services were used.
Imports of goods were up 7.6 per cent in the December 2009 quarter.
The main increases in imports were for plant, machinery, and transport equipment; and for cars.
Exports of goods were down 0.3 per cent this quarter, with volumes of dairy products down 7.1 per cent.
Market forecasts for today's GDP number have been clustered around an increase of 0.8 per cent- up from a feeble 0.3 per cent in September.
The Reserve Bank has been forecasting growth of 0.6 per cent but does expect the rate to pick up to an above-par 1 per cent later this year.
The BNZ-Business New Zealand performance-of-manufacturing index has been pointing to expansion since September after 18 months of contraction.
For the year to March 2012 the average forecast for GDP increased to 3.2 per cent in the latest consensus, from 3 per cent in December.
- NZ HERALD
