Gross domestic product increased 0.9 percent in the June 2016 quarter, following a revised increase of 0.9 percent in the March 2016 quarter, Statistics New Zealand said today.

" Growth this quarter is being driven by strong domestic and export demand," national accounts senior manager Gary Dunnet said. "Household spending was up 1.9 percent, with Kiwis spending more on going away, eating out, and furnishing their houses."

Strong international demand saw exports increase 4.0 percent, with exports of goods posting its biggest quarterly increase in nearly 20 years. This increase was driven by exports of dairy products, meat, and fruit.

"Eleven of the 16 industries were up this quarter, with construction once again providing a boost to production."

Construction grew 5.0 percent, with all construction sub-industries showing increases. This growth also reflected higher construction-related investment, with investment in residential building strongly increasing.

Service industries continued to grow, with a 0.7 percent increase. The main drivers were rental, hiring, and real estate services; retail trade; and health care.

GDP per capita increased 0.5 percent this quarter, following a 0.3 percent increase in the March quarter.

Annual GDP growth for the year ended June 2016 increased to 2.8 percent. The size of the economy in current prices was $252 billion.