Business capital costs increase

Higher computer prices and a fall in the Kiwi dollar pushed the price of buying machinery and other capital items up 0.6 per cent in the June quarter.

Statistics New Zealand's latest Capital Goods Price Index shows prices rose in almost all categories during the quarter, except for land improvements which eased 0.3 per cent due to a fall in fencing material prices.

The index rose 1 per cent for the June year.

A main contributor was the price of plant, machinery and equipment, which rose 1.1 per cent during the quarter, due largely to depreciation in the New Zealand dollar which hiked computer prices.

Residential building prices rose 0.8 per cent, compared with 0.4 per cent in both of the previous two quarters, and an increase of 2.4 per cent over the year.

Civil construction prices paused for breath, up 0.1 per cent after a 1.1 per cent increase in the March quarter. Prices rose 3.1 per cent for the June year, compared with rises of 5.3 per cent and 2.4 per cent in the previous two years.

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