NZ Q1 GDP Meets Forecasts at 0.8%, Manufacturing Up 1.9%

New Zealand's economy expanded 0.8% in the first quarter, matching market forecasts and accelerating from the 0.5% pace in the final three months of 2025. GDP per capita rose 0.5% over the quarter, a sign the recovery is building beyond population-driven expansion. Annual growth stood at 0.8% for the year through March.

Nine of sixteen industries posted higher output. Manufacturing led the advance, up 1.9% on the quarter. Within the sector, transportation-equipment manufacturing jumped 4.0%. Food processing gained 1.7%. Business services rose 1.1%, driven by professional and technical services. Wholesale trade added 2.4% on stronger machinery and equipment wholesaling.

The services sector contributed 0.33 percentage points to headline GDP. Goods-producing industries added 0.08 points. The composition shows an economy gaining traction. The sector distribution reveals the recovery has not reached every corner evenly.

Mining dropped 11.6% on lower oil and gas extraction. Construction fell 1.0%. Residential and non-residential building both declined. Those drags kept the headline from overshooting the consensus.

The Reserve Bank of New Zealand faces a mixed picture from this release. The broad-based expansion reduces the case for near-term easing. Construction and mining weakness means the central bank will watch for demand softening in rate-sensitive sectors. The next policy decision is scheduled for July 9.

The kiwi dollar held near $0.6120 after the release. The cross-rate against the Australian dollar sat at A$0.9200. The RBNZ's own GDP tracker had pointed to a similar range. The print carried little surprise for positioning.

For background on the earlier estimate, see NZ GDP Revised Higher as March Quarter Growth Hits 0.8%.