New Zealand Economy Contracts in Second Quarter, Leaving Room for Rate Cuts

ECONOMIC GROWTH - WELLINGTON. New Zealand's economy contracted in the second quarter as activity fell in a number of major industries, keeping the central bank on track for more rate cuts this year.

Official data out on Thursday showed gross domestic product fell 0.2% in the June quarter from the prior quarter, better than analysts' forecasts of a 0.4% contraction. It followed a 0.1% rise in the first quarter, which was revised down from a previous estimation of 0.2% growth.