Rising demand for service industries saw service industries grow 0.8 percent in the quarter, led by health and retail trade. Construction grew 4.9 percent in the latest quarter, the fastest quarterly rate since March 2014, with all construction industries showing growth and led by trade services and heavy civil engineering. Healthcare and residential care rose 2.7 percent, the highest quarterly growth rate since June 2005, reflecting higher demand for services from a growing population. By Tina MorrisonNew Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. That reflects greater investment in construction, as investment in residential building rose 4.2 percent, non-residential building increased 4.4 percent and other construction advanced 12 percent, the highest quarterly growth rate since June 2014, due to increases in infrastructure such as roading and telecommunications.

Source: New Zealand Herald June 15, 2016 23:15 UTC