NZ Treasury: Early indicators for the December quarter point to a pickup in growth

Its latest monthly economic indicators report published on Monday, New Zealand Treasury showed a rosy picture to the GDP growth for the December quarter.

Key Highlights:

“Real GDP grew 0.3% in the September quarter, below our Half Year Economic and Fiscal Update (HYEFU) forecast. However, revisions to earlier quarters resulted in higher than expected annual average growth of 3.0%.

Early indicators for the December quarter point to a pickup in growth. 

Business and consumer confidence measures rose in the December quarter. 

Residential building consents and increases agricultural production will provide support for residential investment and exports, respectively.

Annual Consumers Price Index (CPI) inflation of 1.9%

Weaker than expected at HYEFU, largely owing to a decline in petrol prices

We expect inflation to dip in the March quarter as lower petrol prices flow through fully into tradables inflation

However, annual non-tradables inflation is expected to continue to rise gradually reflecting capacity pressures.”