The New Zealand economy grew 2.0 per cent in the September quarter, greatly surpassing expectations.

Economists had expected just 0.9 per cent in the quarter.

Services industries were up 2.0 percent and led the charge. The transport, postal, and warehousing industry soared, up 9.7 percent.

The economy grew 6.4 per cent in the year to September 30. This time last year, the Delta lockdown was stifling the economy, especially in Auckland.

The New Zealand dollar rose from US64.53c before the announcement to US64.67c.

“With borders opening to all visitors in the September 2022 quarter, we have seen more spending on both international and domestic air travel,” national accounts industry and production senior manager Ruvanui Ratnayake said.

Goods-producing industries rose 2.4 per cent, with construction up 5.1 per cent.

“The rise in construction was mirrored by increases in residential building, non-residential building, and infrastructure investment,” Stats NZ added.

“Expenditure on transport equipment and plant, machinery, and equipment also rose in the quarter.”

Good and services exports rose 7.8 per cent, with higher exports of dairy products, travel services, and meat products.

Somewhat offsetting these increases were falls in central government expenditure and household consumption.

The data released this morning captured the rebound out of last year’s lockdown and followed a 1.7 per cent lift in the June quarter.

Both Treasury and the Reserve Bank have been forecasting a recession in 2023 - likely in the second half of the year.