We wouldn’t make too much of the fact March quarter GDP, in expanding 1.0%, fell short of the 1.1% increase expected by the market, and us. The outcome involved a pause in manufacturing activity and consumer spending that looked mainly an issue of timing. Besides, annual GDP growth, at 3.8%, actually beat market expectations of 3.7%. This was thanks to Q4’s gain being revised up to 1.0%, from 0.9%, as well as a net upward revision to Q2/Q3 as a whole. While still bumping around a bit in its components, NZ GDP continues to advance its way firmly into excess demand territory. That’s the main message.
Read the full report: Economic Research