NZ Treasury: November data was fairly mixed, points to further growth slowdown
|New Zealand’s (NZ) Treasury is out with its monthly economic indicators report, with the key takeaways found below.
Data released over November was fairly mixed, with some pointing to further slowing in GDP growth, and others indicating that growth may be levelling out.
Employment growth eased in September, and the unemployment rate returned to its start-of-year level (4.2%). The relatively tight labour market is supporting stronger wage growth.
Growing wages and low interest rates are supporting consumer confidence but households continue to dissave. Businesses remain downbeat but indicators of manufacturing activity are more positive.
Data from abroadshowed ongoing slowing in many major economies at the start of the December quarter.
Trade tensions continue to seesaw, but have eased over the last month or so.
On balance, weaker-than-forecast investment and services exports are likely to see overall New Zealand GDP growth fall below Budget forecasts.
The NZD bulls remain unstoppable so far this Monday’s risk-on Asian trading, as NZD/USD flirts with four-week highs of 0.6449, up +0.40% on the day.
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