This morning’s Quarterly Survey of Business Opinion (QSBO) was, overall, about as we expected. As such, it was consistent with the idea that GDP growth is picking up to an above-trend pace, and that this impulse is broadening beyond Canterbury. If there was a downside surprise for us in today’s QSBO it was that its cost/pricing gauges didn’t quite perk up the way we thought they might. However, the deeper drivers of inflation are surely shifting into gear, glaringly so in the labour market. And there is only so much the exchange rate can do to continue keeping a lid on it all.
Read the full report: Economic Research
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