18 Dec 2015

Manufacturing leads unexpected GDP lift

11:35 am on 18 December 2015

An unexpected lift in GDP in the last quarter, led by manufacturing, shows there's more to the economy than dairy, says a business leader.

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Photo: 123rf

The economy grew by 0.9 percent in the three months to September, nearly twice as much as the two preceding quarters combined.

Manufacturing grew by 2.8 percent, due to food production.

Auckland Employers and Manufacturers Association chief executive Kim Campbell said he wasn't surprised by the figure.

"Manufacturing has changed and the old smoke-stag industries have gone," he said.

"But what we call a manufacturer today is actually quite different and most of them are what we call hybrids; they're connected to the world, they're bits made all over the place, they're in the global value chain and New Zealand's actually quite good at it."

Mr Campbell said low energy prices were helping boost manufacturing.