Remember all the time and money the Opposition wasted on manufacturing a manufacturing crisis?
They’ll be hoping we don’t as the good news continues:
Strong growth in manufacturing saw gross domestic product (GDP) rise 0.9 percent in the December 2013 quarter, Statistics New Zealand said today.
Manufacturing activity grew 2.1 percent, driven by increases in food, beverage, and tobacco, and machinery and equipment manufacturing. Manufacturing activity is now at its highest level since March 2006.
Dairy farming and dairy product manufacturing both fell this quarter, after strong increases last quarter, when production rebounded from the drought earlier in 2013.
“While dairy activity fell this quarter, exports were up strongly, as production from last quarter was sold overseas,” national accounts manager Michele Lloyd said.
Wholesale trade, including machinery and equipment wholesaling, increased 3.2 percent this quarter. Strong machinery and equipment sales also led to a 7.5 percent increase in investment in these goods. Investment in plant, machinery, and equipment is now at its highest level since the series began.
The expenditure measure of GDP was up 0.6 percent in the December 2013 quarter, driven by exports (up 3.1 percent) and household spending on goods and services (up 1.3 percent).
The volume of spending by New Zealand households in the December 2013 year grew 3.4 percent, driven by a 7.4 percent increase in spending on durable goods. This is the largest annual increase in spending on durable goods since June 2005.
Businesses would not be making the highest investment in plant, machinery and equipment since the series began if they didn’t have a lot more confidence in manufacturing than the opposition.
It contributed to economic growth of 3.1% in 2013 and that figure is more good news.