BNZ WEEKLY OVERVIEW
BNZ Confidence Survey
This week we are running our fortnightly survey of economic confidence and giving respondents the opportunity to let us know what is happening in their sector. We find the anecdotal comments about what is happening extremely helpful and like to think the many politicians, policy-makers and others who receive the Weekly Overview do also. If time permits (it takes 6-30 seconds) please lick on the URL below to have your say. Remember to specify what sector you are writing about if you make comments. Cut-off is next Tuesday night and results will be distributed on Wednesday 6th.
Data have been thin on the ground this week apart from last Thursday’s economic growth numbers which were weak at just +0.4% for the December quarter - but special factors account for the result so we advise caution before concluding growth is actually slowing. We expect a 1% bounce back in the March quarter.
The monthly business survey from NBNZ showed still very strong activity expectations and rises in pricing intentions and inflation expectations. Residential and non-residential construction consents also shot up further in February. Plus data just out show credit growth still very strong in February. Monetary policy risks therefore continue to lie firmly on the tightening side with the extent of interest rate rises heavily dependent on what the exchange rate does. It has fallen over the past week so the chances are good for another rate hike come April 28.
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