WELLINGTON, June 21 (Xinhua) -- New Zealand's gross domestic product (GDP) rose 0.5 percent in the March 2018 quarter, following a 0.6-percent increase in the December 2017 quarter, the country's statistics department Stats NZ said on Thursday.

Growth in service industries more than offset a fall in construction activity, Stats NZ said.

"The service industries continue to show growth, led by business services and telecommunication services," national accounts senior manager Gary Dunnet said in a statement, adding that at the industry level, 13 out of 16 industries increased this quarter.

Agriculture recovered in the March 2018 quarter, up 0.4 percent, following a 2.8-percent fall last quarter. A rebound in milk production contributed the most to the rise, largely due to improved weather conditions, after hot, dry weather in the December 2017 quarter, Dunnet said.

Construction cooled off, down 1 percent in the quarter but still up 1.4 percent for the year, he said.

Household spending was flat in March, after increasing 1.2 percent last quarter. This movement aligns with retail industry production, which rose just 0.3 percent this quarter, according to Stats NZ.

"Household spending on services was held back by reduced spending on second-hand vehicles, petrol, and clothing," Dunnet said, adding the discovery of stink bugs in car shipments during the quarter has reduced the volume of cars available for sale.

Growth in business investment, particularly in plant, machinery, and equipment, was supported by an increase in the import of capital goods. Exports fell across a wide range of goods, while export services were buoyed by tourism, Stats NZ said.

GDP per capita was flat this quarter, following a 0.1-percent increase in the December 2017 quarter, it said, adding annual GDP growth for the year ended March 2018 was 2.7 percent.

The size of the economy in current prices was 286 billion NZ dollars (195.6 billion U.S. dollars).