This week we take a run-through our eight key themes for the NZ economy and conclude that half are on track and the rest may turn out as we expect when we get data beyond the March quarter.
Statistics NZ this morning released data showing that the economy grew by a slightly slower than expected 1% during the March quarter with construction the main driving force. For the moment neither business investment or private consumption are showing much short-term strength, but we expect that to change.
Borrowers may want to note that bank funding costs for fixed rate lending have increased this week. Exporters will note that the NZD has crept higher and the chances are that it will stay that way all this year.