NZ economy is clearly delicately placed - ANZ

Analysts at ANZ suggest that they were already somewhat circumspect regarding the near-term growth picture of NZ economy, but their latest Business Outlook survey has put them on notice.

Key Quotes

“The economy is clearly delicately placed, and near-term risks are downwardly skewed. However, we also need to be careful to avoid 'Chicken Little' prognoses. There are still reasons for optimism and we are maintaining a core view that any near-term growth wobble won’t turn into something longer-lasting.”

“In data this week, manufacturing production figures for Q3 will help us finalise a view on Q3 GDP growth (which at this stage we still see growing a modest 0.3% q/q). Global dairy prices are expected to remain under modest downward pressure, while our Commodity Price Index will provide an update on the broader picture. Job ads figures will provide a steer on labour demand, while ECT data will provide a timely read on consumer spending trends ahead of the key Christmas shopping period.”