Finance Minister Bill English says that four successive quarters of growth is a welcome sign the economy is continuing to recover – but he warns the economy still faces serious challenges.

The latest Gross Domestic Product statistics show economic activity was up 0.6 per cent in the March 2010 quarter.

Manufacturing activity was up 1.6 per cent, and wholesale trade activity was up 1.4 per cent.

The forestry, mining, and agricultural industries were the main contributors to the increase in primary industries.

And agricultural activity increased 0.8 per cent in the March quarter thanks to increased milk production, partly offset by a decline in livestock production.