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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news