New Zealand's economy grew in the third quarter of 2025 with GDP rising by 1.1% in new figures released by Stats NZ.
The growth followed a revised 1% fall in the June 2025 quarter.
"GDP rose in three of the last four quarters, but fell 0.5% over the year ended September 2025 compared with the year ended September 2024," economic growth spokesperson Jason Attewell said.
"The 1.1% rise in economic activity in the September 2025 quarter was broad-based, with increases in 14 out of 16 industries. This is in contrast to the June 2025 quarter, when GDP decreased in 10 industries."
GDP, or gross domestic product, is a broad measure of growth in the economy.
Business services were the largest contributor to economic growth in the September 2025 quarter, rising 1.6%, driven by a 2.1% increase in professional, scientific, and technical services such as computer systems design.
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Manufacturing rebounded strongly, up 2.2% after a 3.9% fall in the June quarter, led by food, beverage, and tobacco production. In contrast, information media and telecommunications was the biggest drag on growth, down 2.1%. GDP per capita increased 0.9% over the quarter.
On the expenditure side, GDP rose 1.3%, recovering from a 0.8% decline in the June quarter. Exports climbed 3.3%, supported by growth in travel services, dairy, and insurance-related services.
Attewell said gross fixed capital formation was up 3.2% as businesses invested more in physical fixed assets in the September quarter.
"There were increases in transport equipment and plant, machinery, and equipment, supported by imports of related capital goods and motor vehicles."
Business investment also lifted, with gross fixed capital formation up 3.2% as firms increased spending on transport equipment, machinery, and plant. Household consumption edged up 0.1%, with stronger spending on durable goods such as motor vehicles and electronic equipment partly offset by weaker spending on services and non-durable items.
'This is what healthy growth looks like' - Willis
Finance Minister Nicola Willis says the growth was "welcome news" ahead of Christmas.
"This growth was broad-based, occurring in 14 of the 16 sectors measured by Stats NZ," she said.
“This is what healthy growth looks like. With all the indicators pointing to further growth in the final quarter of the year, Kiwis can go into Christmas confident the economy has finally turned the corner after a tough few years."
She said Treasury and the Reserve Bank were forecasting accelerating growth and falling unemployment, touting it as evidence the Government's plan was working and adding she was "particularly pleased" to see growth in manufacturing, construction, and business services.
"These are job-rich sectors of the economy. Together with growth in exports of 3.3%, and increased investment in residential buildings, plant and machinery, and transport equipment, this augurs well for future job prospects as well as higher incomes.
"It is also pleasing to see that gross domestic product (GDP) per capita rose 0.9% in the three months to September."
Labour says 'zero growth' since National took office
Labour's finance and economy spokesperson Barbara Edmonds says the economy is smaller now than when National took office and accused the Prime Minister of "making things worse, not better".
"Christopher Luxon promised growth. Instead, under his watch the economy has shrunk over the last year - and it hasn’t grown at all since he became Prime Minister."
Edmonds said governments should be judged on whether families were better off.
"Today’s data confirms what people are already feeling: Christopher Luxon is making things worse, not better. Christopher Luxon has no idea what life is like for most New Zealanders, so, when he stands up and says, ‘the economy is turning a corner,’ let’s be clear about what he really means: the economy is working for a few - not for the rest of New Zealand."
Asked about Edmonds' comments on zero economic growth since National came into power, Willis said they had used a year-to-year comparison, which was a "lagging indicator".
"What we can positively say is that comparing the September quarter this year, September quarter last year, the economy is 1.3% better."
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