NZIER survey points to trading slowdown

By Esther Goh, January 17, 2012 @ 10:42 am

Local trading slowed in the last quarter as manufacturing and construction eased.

According to NZIER’s Quarterly Survey of Business Opinion (QSBO) firms' trading activity fell to -4 percent in the December quarter from 1 percent in the September quarter.

This was consistent with annual economic growth of around 1.6, principal economist Shamubeel Eaqub said.

“While services and retail grew, manufacturing was flat and there was less construction. Canterbury is rebounding from the earthquake disruption, but the rest of the country is slowing. Retailers’ very strong expectations for the December quarter, which may have been related to the Rugby World Cup, did not materialise”.

Eaqub said the survey indicated slowing momentum but still positive activity in the economy.

"Firms report continued hiring and positive hiring intentions. This is encouraging, given a darkening global economic backdrop."

Investment intentions soared in Canterbury as firms seek to replace lost capital and building, plant and machinery investment intentions have surged, but are slowing elsewhere in the country.