NZ: Economic momentum coming off the boil - ANZ

According to analysts at ANZ, economic momentum in the New Zealand economy is coming off the boil as the QSBO experienced weak trading activity data last week and contributed by the slowing population growth, labour shortages and squeezed profitability.

Key Quotes

“Growing off a strong base is harder, of course, and the data is still consistent with growth in a 2-3% range, a soft landing by anyone’s standards. But it’s worth taking a sideways look at the darkening clouds gathering around the global outlook.”

“Fair to say the news on global manufacturing and trade has been pretty one-sided of late. But other sectors are looking more robust and New Zealand’s commodity prices are so far proving remarkably resilient.”

“The highlight of the domestic data calendar this week is Q4 CPI inflation – we expect 0.0% q/q and a slight easing in annual CPI inflation to 1.8%.”