The recession has deepened, with the New Zealand economy now confirmed as being in reverse for nine consecutive months.
Statistics New Zealand says Gross Domestic Product - a broad measure of the health of the economy - contracted 0.4% in the three months to September.
GDP previously fell by 0.3% and 0.2% in the first two quarters of this year.
Statistics NZ says household spending continued to fall, as did business investment.
For the year, economic activity grew 1.7%. Radio New Zealand's business editor says that masks the contraction in economic activity for the third successive quarter.
Goldman Sachs JB Were senior economist Shamubeel Eaqub also says the figure is worse than it appears and the real cost of the recession will be felt next year.
He expects GDP to continue to contract through to the third quarter of next year.
New Zealand was last in recession in 1997-98 for nine months amid the Asian financial crisis.