Broad-based growth, led by services and manufacturing
Gains were seen across nine of 16 industries. Professional services rose 2.7%, led by computing services, while manufacturing jumped 2.4%, buoyed by higher primary goods production.
“Economic activity lifted 0.8% over the March quarter. It’s nice to have some good news. But we’re holding our horses as we expect the current pace to dissipate over coming quarters,” Kiwibank economist Sabrina Delgado (pictured centre) said.
Construction posted its first quarterly lift in over a year, rising 0.5%, while primary industries grew 0.8% on the back of stronger agricultural output and a weaker Kiwi dollar.
Per capita growth still negative
Despite the headline result, the economy remained 0.7% below pre-recession levels, and GDP per capita was down 1.6% year-on-year.
“As a result, our recently revised forecasts for the Kiwi economy entail a slower pace of recovery ahead,” Delgado said. “It still feels harder than it should be to be a Kiwi.”