The recession ended in the June quarter, with the economy growing by the barest of margins, up just 0.1 per cent, according to official figures.

Most economists and the Reserve Bank expected a slight fall in the June quarter, but that growth would return in the September quarter. The recession began at the start of 2008.

Economist said yesterday that a better than expected result for the economy could see the kiwi dollar continue to rise against the US dollar. The kiwi went above US72c for the first time in 13 months, peaking at US72.43c overnight, before easing to US72.04c by 8am today, before the GDP release just out.

Economic activity, as measured by Gross Domestic Product (GDP), was up less than 0.1 per cent in the June 2009 quarter, Statistics New Zealand said.

This growth in economic activity follows five quarters of contraction in the New Zealand economy.

Activity in the primary industries was up 1.5 per cent in the June 2009 quarter, mainly driven by forestry and logging (up 8.0 per cent).

The increase in forestry and logging production was related to an increase in exports of logs to the People's Republic of China.



Activity in the goods-producing industries contracted 0.5 per cent in the June 2009 quarter. The manufacturing (down 1.3 per cent) and construction (down 1.9 per cent) industries both declined. A 5.9 per cent increase in electricity, gas and water partly offset these declines.



Activity in the services industries was flat this quarter. Service industries that increased were real estate and business services (up 1.5 per cent) and communications (up 1.7 per cent). Offsetting these increases were declines in wholesale trade (down 2.1 per cent), transport and storage (down 3.3 per cent), and government administration and defence (down 0.4 per cent).



The expenditure measure of GDP, released concurrently with the production measure, was up 0.4 percent in the June 2009 quarter. Household consumption expenditure, which measures the volume of spending by New Zealand households, was up 0.4 per cent.

This increase in household spending was driven by non-durables (mainly motor fuel) and services. Household spending on durable items fell.



Export volumes were up 4.7 per cent in the June 2009 quarter, with exports of dairy and wood products the main contributors. Import volumes decreased 3.8 percent in the same period, with the largest declines in intermediate goods, and machinery and plant equipment.

The combination of higher exports, lower imports, and a decline in manufacturing led to a large, $1.1 billion run down in inventories.