New Zealand's construction sector remains in decline while slowing exports hurt manufacturing. Photo: AP PHOTO

New Zealand's economy has contracted more than expected in the second quarter as construction remains in decline and global uncertainty weighs, increasing expectations of a steeper rate cut in October.

Subscribe now for unlimited access .

Login or signup to continue reading All articles from our website The digital version of Today's Paper All other regional websites in your area Continue

Official data out on Thursday shows gross domestic product (GDP) fell 0.9 per cent in the second quarter from the prior quarter, worse than analysts' and the Reserve Bank of New Zealand's forecasts of a 0.3 per cent fall.

New Zealand's economy has contracted in three of the

See Full Page