Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


ASB Cantometer Index Lifts as Labour Market Recovers Further


ASB Cantometer Index Lifts as Labour Market Recovers Further

Further lift in Canterbury employment demand drives another increase in ASB Cantometer.
Outside of construction, Canterbury recovery remains gradual.

The ASB Cantometer index lifted further over February, rising to 0.6 from 0.5. The lift follows labour market data, released in early February, which revealed an improvement in employment in the Canterbury region. In particular, hours worked recovered strongly over the December quarter, with this measure lifting from -1.4 to +0.1 within the Cantometer Index.

ASB Chief Economist Nick Tuffley says, “Labour market data has been very volatile over the past year. But generally, we’re seeing a pickup in construction employment and a gradual recovery in employment demand for the Canterbury region as a whole.”

The remaining sub-indices remained relatively steady over February. The construction index remains strong and continues to underpin the recovery in the Canterbury region. Nick Tuffley notes that, “We’re still yet to see meaningful improvement in the Miscellaneous category. So while we’ve seen spillover effects of construction to retailing, other areas have yet to benefit meaningfully.”

Outlook

“We expect Canterbury reconstruction activity to underpin the nationwide lift in residential construction over the coming year. However, for the time being, spillover effects from construction remain relatively confined to retailing,” says Mr Tuffley.

“In light of indications of less momentum in the wider economy and subdued inflation pressures we continue to expect the RBNZ will leave the OCR unchanged until March 2014,” concludes Mr Tuffley.

About the Cantometer

The Cantometer is designed to summarise activity in Canterbury. The study takes a range of publically available regional economic data, which is standardised and aggregated into a summary measure. The index has been rebased to zero in June 2010 (the end of the quarter immediately preceding the first earthquake) such that a positive number represents activity being above pre-earthquake levels.

Along with the aggregate Cantometer index, there are five sub categories: Construction, Housing, Employment, Consumer spending and Miscellaneous*. These sub-indices will provide some insight into which sectors are driving the rebuild activity at a given point in time.

For most activity the data reference the level of activity. However, when incorporating wages and house prices into the index we believe levels are less informative. Instead the index uses prices relative to the rest of the country. An increase in relative prices is a signal for resources to be reallocated to the Canterbury region.

The historical Cantometer series represented on the charts is a simple average of the complete set of data for each month.

*The miscellaneous category includes electricity, car registrations, guest nights and permanent and long-term net migration. A common factor driving these areas will be population growth, and we expect all these indicators to increase as the rebuild gathers momentum.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news