Weekly Overview 9/12/11

Welcome to the December 8 issue of the BNZ Weekly Overview.

This week we have included extensive coverage of the NZ real estate market using data and feedback from our two monthly surveys along with discussion of the monthly Barfoot and Thompson data for Auckland and The Economist magazine analysis suggesting NZ house prices are over-valued 25%. We look also at some fairly weak manufacturing data released this morning (non-meat and dairy processing down 1.1%), the reasonably well entrenched downward trend in spending on cars revealed in monthly registrations data, and a 2.3% fall in construction during the September quarter.

We also note data showing growth in spending on tractors and commercial vehicles and data showing NZ income inequality lower than mid-1990s levels. Offshore the Aussies have cut their cash rate 0.25% at the same time as revealing their economy grew 1% last quarter. But all eyes are on the leaders’ summit in Europe over the next two days which may or may not bring an end to deepening investor concerns about the fiscal and banking situation in Europe. Here’s hoping they get it right this time.

This Summer I have started researching the economic relationship between New Zealand and China in all its aspects – FDI, trade, migration, tourism etc. I would be interested in any observations people might have from their interactions with China and welcome anyone offering themselves as a point of contact for my work which will likely extend through the first half of 2012. If you are willing to assist email me here. Many thanks.

Tony.alexander@bnz.co.nz

WODec8.pdf

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