NZ: Expect a 0.5% q/q lift in production-based GDP - ANZ

Research Team at ANZ, expects a 0.5% q/q lift in NZ’s production-based GDP (+2.6% y/y), which is in line with the consensus and a touch below the RBNZ’s MPS pick.

Key Quotes

“We see risks as broadly balanced. For the third consecutive quarter, decent goods and services sector growth is expected to be offset by a contraction in primary sector activity.

Led by construction, the goods sector is expected to have risen 2.2% q/q. Services sector activity is expected to grow 0.6% q/q, a touch softer than in the second half of 2015.

Primary sector activity is expected to have fallen for a third consecutive quarter (-0.2% q/q). Expenditure GDP should be supported by reasonable domestic demand growth.”