Monthly Economic Indicators report for February 2018

The Treasury has published its Monthly Economic Indicators (MEI) report for February 2018. The report can be found here: http://bit.ly/2tdSWaZ

Key points:

• The unemployment rate fell to 4.5% in December, and wage measures were mixed, with annual Quarterly Employment Survey (QES) growth of 3.1%, but Labour Cost Index (LCI) growth unchanged at 1.8%
• House prices and sales volumes both increased in January
• Consumption indicators were positive: for the December quarter retail sales volumes rose 1.7% (sa), and in January electronic cards spending rose 1.4% (sa)
• Global 10-year bond yields pushed higher in February as analysts expect a faster pace of tightening of monetary policy in 2018

This month’s MEI special topic covers estimation of the Natural Rate of Unemployment.