Suppliers of plant, machinery and equipment need not tighten their belt buckles just yet as economic indicators show that the market is still buoyant.
Economic data released by Statistics New Zealand shows that businesses are investing heavily in new plant, machinery and equipment.
Expenditure on plant, machinery and equipment (excluding transport) rose 7.5% to $4.7 billion in the December quarter, year on year expenditure rose by 20%.
Domestically, local engineering firms saw a 6.2% increase in machinery and equipment manufacturing in the December quarter, the highest level reported since March 2011.
Year on year imports of capital goods were up by 18% from 2012 to 2013 says Statistics New Zealand.
The December quarter recorded a 0.9% rise in gross domestic product, and it lifted economic output to a level 3.1% higher than in December 2012.
Manufacturing made the largest positive contribution to the rise, agricultural output fell slightly, dairy exports rose 20% and oil and gas exploration drove mining activity up 9.5%.
Construction activity has also fuelled the rise up 0.4% in the quarter and 7.6% up on the figures in December 2012.
