NZ: Growth picture still looks good - ANZ

Research Team at ANZ, suggests that the New Zealand’s growth picture still looks good, and some downside risks (dairy) are also starting to diminish.

Key Quotes

“Outside of quarterly volatility (strong Q2 and perhaps a softer Q3), it is a growth story we expect to continue. Further capacity pressures should emerge as a result, although new underutilisation figures suggest spare capacity in the labour market remains, giving a little more context to recent benign wage growth. It of course contrasts with firms reporting it is more difficult to find staff, although that just further supports the argument that the “mix” of current strong migration gains is not quite right. This week a small trade deficit is likely, while new lending figures will remain strong ahead of the next round of LVR restrictions.”