Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search


Molesworth & Featherston (Weekend) – Sept. 10 2006

Molesworth & Featherston - Weekend Update edition

Business and Political News
September 10th 2006

Direct Link To This Week's Weekend Update Edition:

Mild side

The economy has been doing better than expected, Treasury has told ministers in its latest monthly economic update. But the figures are still modest - Treasury says growth in the year to March 2007 will come in at around 1.5 percent, only a tick better than the one percent growth forecast in the Budget.

Better news is in the composition of the improvement. Treasury expects the current account deficit in the current three months (July-September) to be much reduced from its horrendous levels because dairy exports are up strongly. This was an improvement Treasury expected would come later this year. Meanwhile, imports are weak. Expect the economy to grow half a percent in this three months, and possibly more. The current slowdown “appears to be relatively mild compared with New Zealand’s historical experience,” Treasury concludes.

Meanwhile forecasters at the NZ Institute of Economic Research say growth will reach its low point in the year to next March and won't pick up much the year after. The forecast has improved compared to its last pick, in June, although NZIER now thinks we’ll do worse next year than it had previously believed. It thinks the labour market is slowing and unemployment will increase to five percent of the labour force over the next two years.

On the other hand Westpac thinks manufacturers could be in for a pleasant surprise. While manufacturers are glum about falling profitability as a result weak domestic demand, strong international competition and rising costs, there are some positive balancing sweeteners: The lower dollar and reasonable world economic growth.

Westpac says manufacturing profit margins are closely related to the value of our dollar relative to the Aussie dollar - and since our dollar is down on the Australian, profit margins are likely to be getting better.

“One gets the feeling that manufacturers are in for a pleasant surprise - with margins turning out to be higher than currently expected,” Westpac concludes.


The Weekend Update is a complimentary, condensed edition of the paid-subscription only Governor’s Edition published earlier last week.

The ‘Governor’s Edition’ of Molesworth & Featherston is released from its trap deep in the Earth every week.

Bulk subscriptions are available with heavy discounts for organisations to send one to every decision-makers’ in-box.

Just email us for details or secure an individual subscription online through the awardwinning Good-Returns site with your credit card HERE.

Direct Link To This Week's Weekend Update Edition:

© Scoop Media

Top Scoops Headlines


27-29 Sept: Social Enterprise World Forum Live Blog

1600+ delegates from more than 45 countries have came together to share wisdom, build networks and discuss how to create a more sustainable future using social enterprise as a vehicle. Attending the Forum were social enterprise practitioners, social entrepreneurs, policy makers, community leaders, investors, activists, academics and more from across the globe... More>>

HiveMind Report: A Universal Basic Income For Aotearoa NZ

Results from this HiveMind suggests that an overwhelming majority of Kiwis believe that due to changing circumstances and inefficiencies in the current system, we need a better system to take care of welfare of struggling members in our society. More>>


Scoop Hivemind: Medical Cannabis - Co-Creating A Policy For Aotearoa

Welcome to the fourth and final HiveMind for Scoop’s Opening the Election campaign for 2017. This HiveMind explores the question: what would a fair, humane and safe Medical Cannabis policy look like for Aotearoa, NZ in 2018? More>>


Lyndon Hood: Notes On National’s Election Campaign, In Poem Form

Nationyl’s bitumen-ing / As they du du / Seed groweth / River floweth / Then ‘dozer drives thru / Highway ensu. More>>