NZ Treasury: New Zealand Activity Index (NZAC) may indicate that the recovery is starting to plateau

New Zealand’s (NZ) Treasury is out with its latest Economic Update, with the key highlights found below (via Reuters).

The latest New Zealand Activity Index (NZAC) continues to show modest growth.

Activity in January was up 0.8% compared to January 2020. 

The growth is slower than in the previous months due to contradicting signals from the constituent indicators. 

While electronic card spending and heavy traffic declined compared to January 2020, the PMI is at its highest level since August 2020 and is much higher than the same month last year.

The latest NZAC result may indicate that the recovery in activity following COVID-19 related disruptions, is starting to plateau.