Tuesday 18th September 2012 |
Text too small? |
More evidence is emerging that the New Zealand economy remains stuck in a subdued, low-growth pattern, with BusinessNZ's September Planning Forecast report showing the economy is "more or less stagnant."
While food and other soft commodities are not taking the hammering being experienced by minerals, the high New Zealand dollar and the fall-off in growth in Asia, particularly China, means businesses should plan for more of the same uncertain conditions, the business lobby's economist John Pask says.
Based on numerous current economic indicators, the latest analysis shows no strong evidence of growth or decline.
"The global economic growth outlook is subdued, with reduced demand likely to impact on New Zealand, although drought in the US may increase grain and beef prices to the advantage of New Zealand meat producers," said Pask in a commentary note. "Although recent dairy trade auction results have been buoyant, future projections for dairy are muted."
While there were signs of life in the Auckland housing market and the Christchurch rebuild is starting to gain steam, these were no more than pockets of optimism which were not showing up in either employment or output improvements.
"For now, uncertainty is the new certainty," said Pask.
BusinessDesk.co.nz
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes