The New Zealand Institute of Economic Research's June quarterly survey of business opinion released this morning provides cautiously positive reading.
NZIER chief executive Jean-Pierre de Raad says economic activity improved in the June 2011 quarter, but is cautious in overstating the situation.
See weekly market update video below with IRG BOP's Jonathan York.
'Economic conditions reflect modest growth,” says Jean-Pierre.
'Business confidence bounced back after the Canterbury earthquake, but there continue to be signs of economic weakness.”
These include falls in the labour market with the amount of full-time employment dropping.
The biggest problem, however, appears to be people's lack of spending intent and the resulting lack of demand.
'Local demand has strengthened while exports have stabilised, but demand is still the biggest constraint on businesses and margins are tight.”
1 comment
If you haven't got it
Posted on 06-07-2011 08:51 | By Openknee8ted
you can't spend it, thats why there is no demand. National's economic policy is a failure and please don't blame the earthquake. All they have done is borrow and spend on infrastructure as Muldoon did when it was called Think Big and then hope the world economy comes right. But like Muldoon they have been caught out, the world economy has not come right as quickly as hoped. Free trade means that all New Zealand industry that has wage costs of more than $2 per week is uncompetitive. So what are National doing - Free Trade agreements with India and China! Selling our only profitable businesses Electricity Generation and Farming to pay of the overdraft from John Key's Think Big epiphany.
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