New Zealand economic growth accelerated less than the central bank and economists forecast in the second quarter as manufacturing and residential construction declined, offsetting a recovery in farm output.
Gross domestic product increased 0.4 percent from the first quarter, when it rose 0.2 percent, Statistics New Zealand said in Wellington Thursday. The second-quarter expansion was less than the 0.6 percent forecast by the Reserve Bank, which was also the median forecast of 16 economists surveyed by Bloomberg News. GDP rose 2.4 percent from a year earlier.
Annual growth slowed from a revised 2.7 percent in the first quarter, underscoring the RBNZ’s decision last week to lower the official cash rate for a third time in three months and to signal a further reduction. Falling export prices are discouraging investment and damping demand, while construction activity in Christchurch has reached a peak, the central bank said.