Economy stronger than expected in 3Q

The economy expanded for the thirteenth consecutive quarter in the three months to the end of September and the pace of growth was above economists' expectations, Economic Development Minister Jim Anderton said today.

"The economy grew by 1.5% in the three months to September 30, a very strong result, and was underpinned by strong internal demand, namely high household spending as well as solid business investment.

"This final reading for the year on our economy is reassuring and consistent with Treasury forecasts for ongoing sustainable growth in the next few years," Jim Anderton said.

Statistics New Zealand reported today that the production based measure of gross domestic product expanded 1.5% in the September Quarter from the June Quarter to stand 3.5% higher than a year earlier.

In the 12 months to the end of September, GDP expanded by 3.9%.