GDP figure revised downward after building data error

12.15pm

The detection of a processing error in Statistics New Zealand (SNZ) first quarter residential building work data means the surprisingly robust GDP figure for the period has been revised downward.

March quarter GDP (gross domestic product) has now been revised to 2.1 per cent from the previously reported 2.3 per cent after SNZ said residential building work put in place over the period was $1.56 billion rather than $1.68 billion.

SNZ said the residential construction figures were key data used to estimate economic activity in the construction sector, a component of Quarterly Gross Domestic Product figures.

Economists were dumbfounded when, against expectations of a 1.6 rise in March quarter GDP, the figure came in at 2.3 per cent.

"Statistics New Zealand regrets any inconvenience this error may have caused users," it said today.

The strong construction industry has been cited as a key contributor to the country's surprisingly buoyant economic performance in recent months.

SNZ said with the corrected figure, the value of residential building work put in place in the March quarter was up 20 per cent on the same period a year earlier, and up 6 per cent on the December 2003 quarter.

The value of non-residential work put in place in the quarter was also revised downward today, to $799 million from the $817 million earlier reported.

The value of all building work in the March quarter was $2.36 billion, up from $2.5 billion reported in June.

After adjusting for price changes, the value of residential building work put in place was up 11 per cent on a year ago.

- NZPA