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

 

Tony Alexander's Weekly Overview - June 21


Welcome the June 21 edition of Tony Alexander's Weekly Overview

This week fresh data on the state of the NZ economy was almost completely absent apart from this morning’s GDP numbers. They show that the economy grew by 1.1% in the March quarter and 1.7% in the year to March. However, all is not as it seems. During the quarter household spending rose 0.1% and exports fell 1.7% while house building declined 0.5% and imports soared 4.1%. What delivered the 1.1% result then? A massive rise in inventories.

Taking away the stocks surge the economy actually shrank 0.5% in the quarter and grew only 0.3% in the year to March. Therefore while it is unsurprising that the markets reacted to the result by pushing the NZD above 80 cents for a while and taking swap rates higher, the underlying picture for our economy is not robust.

In fact this week we note further evidence of falling confidence and while in Europe Greece finally has a government, Spain is on the brink of having to ask for a bailout as bond yields rise above 7%.

The world remains an extremely uncertain place – including to some degree in China which we write about in this month’s issue of Growing With China released this morning.

Full Report (PDF)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Ongoing Monetary Tightening
The Monetary Policy Committee today increased the Official Cash Rate (OCR) to 3 percent from 2.5 percent. The Committee agreed it remains appropriate to continue to tighten monetary conditions... More>>



Statistics: Weekly Earnings Rise As More In Full-time Employment

Median weekly earnings from wages and salaries rose by 8.8 percent to $1,189 in the year to the June 2022 quarter, Stats NZ said today... More>>



Bell Gully: Uncertainty Ahead With New Unconscionable Conduct Legislation

new prohibition against ‘unconscionable conduct’ in trade is one of a number of changes to the Fair Trading Act 1986 that come into force from 16 August 2022. The new prohibition may have wide-ranging implications for many businesses... More>>


Electricity Authority: Imposes Interim Restrictions On Very Large Electricity Contracts

Consumers of electricity will be protected from potentially paying more than they should due to the impact of very large electricity contracts on wholesale prices, under urgent changes announced today by the Electricity Authority... More>>


Westpac: Economic Overview, August 2022 – Pushing Through

The New Zealand economy faces some lean growth in the year ahead as households’ budgets are squeezed, according to Westpac’s latest Economic Overview... More>>


Kiwi Group Holdings: Fisher Funds Acquires Kiwi Wealth Business

Kiwi Group Holdings Limited (KGHL) today announced the sale of Kiwi Wealth to Fisher Funds for NZ$310 million... More>>