The New Zealand economy is growing quicker than picked in the first quarter – pushing the dollar up after the data was released.
Big-money investment around infrastructure like roading helped haul construction to grew at the fastest rate in two years, 4.9% with all construction showing growth.
Trade services and heavy civil engineering topping the sector.
Gross domestic product expanded 0.7 percent in the three months ended March 31, from a 0.9 percent pace in the final quarter of 2015, Statistics New Zealand said. That’s ahead of the 0.5 percent forecast in a Reuters poll of economists, and the Reserve Bank’s 0.6 percent estimate.
The Reserve Bank held off cutting interest rates this month as it awaited more data on the economy, including today’s report and upcoming inflation and labour market reports.
The better-than-expected figures reduce the chances of an imminent cut at the next scheduled Reserve Bank decision in August.
The kiwi dollar spiked higher following today’s data, and was trading at US70.74 cents from 70.36 cents immediately before the figures were released
