New Zealand shares ended lower on Thursday while the country's economy returned to growth in the third quarter.

The S&P/NZX 50 Index fell 0.3% or 39.14 points to close at 13,256.77, reaching its lowest since September.

New Zealand's economy expanded 1.1% in the September quarter, following a 1% contraction in the June quarter, Stats NZ data showed.

"Data have improved, and the economic starting point is higher, but spare capacity remains in excess - it is a long climb to escape this economic hole. But we take growth where we can get it," ASB Bank economists said in a note, as quoted by Reuters.

The European Central Bank, Norges Bank, and Riksbank are expected to hold rates on Thursday as focus turns to outlook, while markets brace for a possible Japan rate hike on Friday amid uncertainty over next year's tightening pace, Reuters reported in a separate article.

In domestic news, New Zealand's September quarter gross domestic product data showed the economy improving through the period from a low base, and continued high quarterly volatility in the GDP data, according to a report by ANZ Research.

Also, the Reserve Bank of New Zealand's decision to reduce capital requirements for banks as part of its review will boost level one and two common equity tier 1 (CET1) capital and generate modest cost savings through lower funding costs, according to a Wednesday report by Jefferies.

In corporate news, Fonterra Co-operative Group (NZE:FCG) narrowed its farmgate milk price outlook to between NZ$8.50 and NZ$9.50 per kilogram of milk solids (kgMS) for the 2025 to 2026 season from a prior estimate of NZ$9 to NZ$10 per kgMS.

ANZ Group Holdings (ASX:ANZ, NZE:ANZ) said more New Zealand customers were asking about switching from a floating rate home loan to a fixed rate home loan recently, after retail home loan rates started to rise, Radio New Zealand reported on Thursday.