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

 

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news