Bloomberg is reporting that New Zealand’s economy grew at the fastest annual pace in two years last quarter as construction boomed and manufacturing rebounded.
The housing boom is stoking New Zealand’s economy, which is among the fastest growing in the developed world.
Second-quarter growth was led by a 1.9% gain in goods-producing sectors, as construction surged and manufacturing increased for the first time in three quarters.
The housing boom aided growth through increased production of cement, and through more property transactions, as well as home building:
Construction increased 5% from the first quarter, when it rose a revised 5.1%.
Manufacturing was led higher by a jump in cement and concrete production.
Services, which make up 70% of the economy, expanded 0.7%.
Lime specialist Graymont has entered into an agreement with Holcim New Zealand and New Zealand Steel Limited to acquire their shares in McDonald’s Lime, and a formed a further agreement with Holcim to purchase its Taylor’s Lime assets.
New Zealand wood policy described as “inappropriate” and “a huge disservice to the hardworking men and women in the cement and concrete industries” by CCANZ CEO Rob Gaimster.
The New Zealand government wishes to increase the revenue gained from its minerals industry, given the plentiful resources available. However, much of the land in question is protected by law and as such significant changes will need to be made.