Spring is in the air

12 Oct 2016

Spring is in theair

 

Thereis a distinct spring in the step of the New Zealand economy, with nearly allindicators pointing to continued expansion, according to the BusinessNZPlanning Forecast.

BusinessNZChief Executive Kirk Hope says indicators are pointing towards a respectablegrowth rate of about 3.5 percent for 2016/7.

"Manufacturingand services data are strong, construction and tourism are booming, andconfidence is returning to the agricultural sector, particularly dairy.

"Indicatorsof business and consumer confidence are generally positive across the board,and feedback from BusinessNZ's Affiliated Industries Group shows the optimismshared widely across most sectors.

"Howeverhousehold and farm debt are growing strongly, bringing the risk of exposurewhen interest rates inevitably rise."

TheBusinessNZ Planning Forecast incorporates BusinessNZ's Economic ConditionsIndex (ECI) which tracks 33 economic indicators including GDP, export volumes,commodity prices, inflation, debt and business and consumer confidence.

TheBusinessNZ Planning Forecast for the September 2016 quarter sits at 19, down 1on the previous quarter and up 12 on a year ago.

TheBusinessNZPlanning Forecast for the June 2016 quarter is on www.businessnz.org.nz.