NZ Economy Grows 0.2%, Construction Boosts Growth

New Zealand's economy grew by 0.2% in the June quarter, outperforming the Reserve Bank's forecast of flat growth. The increase was driven by construction activity, which rose 2.7%, with residential building construction contributing significantly to this growth.

Statistics NZ also reported that GDP per capita increased by 0.1% during the same period, while expenditure on GDP rose 0.4%. Gross fixed capital formation also saw an increase of 1.5% in the June quarter, led by increased spending on residential building work.

The economy's growth was affected by external factors, including the Middle East conflict and related fuel price increases, which impacted retail trade and accommodation, resulting in a fall in volume terms. The transport sector also saw a decline of 1.7%, driven by a drop in road transport and transport support services.