New Zealand's agriculture-rich economy contracted unexpectedly in the third quarter, raising questions about whether interest rates have been risen too far with the economy on track for a return to recession. The economy contracted 0.3% in the quarter, following a revised 0.5% increase in GDP in the second quarter, according to figures released by Stats NZ Thursday. Economists had expected the economy to grow by 0.2% over the quarter. Household spending was down 0.6% in the quarter, Stats NZ said. All categories fell, led by declines in spending on durable goods. The drop in household spending was likely connected to ... (full story)