The pick-up in the forestry sector – a key driver in truck and equipment sales – was one of the primary reasons for the outstanding economic growth recorded in the final three months of last year.
The New Zealand economy reported its fastest growth in three years – with demand for forestry exports underpinning gains in the primary sector.
Gross domestic product grew 1.5% to $36.81 billion in the three months ended December 31, from a 0.2% pace in the September period, according to Statistics New Zealand.
That is almost twice the 0.8% pace of expansion predicted by the Reserve Bank in its latest forecasts, published last week, and the fastest pace since December 2009.
The economy grew at an annual pace of 2.5%, the highest annual GDP growth since March 2008. Activity in the December quarter was 3% higher than the same period in 2011.
Primary industries activity grew 3.2% in the December period, underpinned by a 9% lift in forestry, and is at the highest level since the series began in June 1987.
Those gains offset a fall in dairy production, which was reflected in a decline in dairy product exports.
Primary industries grew 9.4% on an annual basis, led by a 15% gain in agriculture from favourable season at the start of the year – good news for suppliers of trucks and equipment to these industries.
