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

 


Treasury Release : May 2014 Monthly Economic Indicators

Treasury Release : May 2014 Monthly Economic Indicators

The May Monthly Economic Indicators (MEI) was published today on the Treasury Website at2:00pm. The report provides a summary of recent economic events.

The main points:

• May’s data releases showed strong demand confirming the continuation of economic momentum.

• The labour market continued to improve in the March quarter, with strong jobs growth and an expansion of the labour force, resulting in a steady unemployment rate.

• The international economy showed some weakness in the March quarter, with slower growth in some of New Zealand’s major trading partners.

This month’s special topic is a comparison of the Australian and New Zealand Budgets released in May.

Read more at:

http://www.treasury.govt.nz/economy/mei/may14

Executive Summary

• May’s data releases showed strong demand, confirming the continuation of economic momentum.

The labour market continued to improve in the March quarter, with strong jobs growth and an expansion of the labour force, resulting in a steady unemployment rate.

The international economy showed some weakness in the March quarter, with slower growth in some of New Zealand’s major trading partners.

Data released in May showed continuing strong demand in the economy, confirming the continuation of economic momentum from the second half of 2013, although business and consumer confidence eased slightly but remain at elevated levels. Data on retail spending continue to support our expectations of a solid lift in private consumption in the March quarter.

There was strong jobs growth and an expansion of the labour force in the March quarter, resulting in a steady unemployment rate and moderate wage growth. The relatively subdued wage inflation is consistent with the moderate underlying inflation across business costs in general but is still expected to accelerate in the year ahead as the labour market gradually tightens. An expanding workforce also contributed to higher labour incomes, providing further support for domestic demand

The ongoing surge in net migrants, along with elevated consumer confidence, is consistent with a further strengthening of domestic demand over the middle of 2014. However, there are several factors which will act to temper demand, including easing dairy prices, monetary tightening and a moderation in house price inflation.

Dairy auction prices continued to ease from historically elevated levels and were reflected in Fonterra’s lower forecast milk payout for the upcoming 2014/15 season. Falling dairy prices are likely to flow through a decline in export values in coming months, although recent increases in the price of other commodities will provide a partial offset.

All told, recent developments support the Treasury’s recently released Budget Economic and Fiscal Update 2014, the economic forecasts for which were finalised on 17 April.

The international economy showed some weakness in the March quarter, with relatively low growth in some of New Zealand’s major trading partners. However, activity was strong in the UK and Japan, and the US picked up as the harsh winter receded. The policy stance of the major central banks remains accommodative and global monetary conditions are likely to be easy for some time.

This month’s special topic is a comparison of the Australian and New Zealand Budgets released in May.


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news