Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
Business confidence looking up’ despite dip in one area
Businesses assessments of their confidence based on their own trade, sales and conditions are increasingly positive, ANZ’s chief economist says.
Housing confidence rises as interest rates continue to fall
Housing confidence is continuing to rise with a significant jump in the number of Kiwis who believe now is a good time to buy, ASB data shows. The bank’s latest Housing Confidence Survey shows a net 24% of respondents expect house prices will rise in the three months to October, up from a net 13% in the previous quarter.
Retail spending recovery expected by mid-2025
Retail spending dips marginally, with Westpac and ASB predicting a gradual recovery. Retail sales volumes in New Zealand dropped 0.1% in the September 2024 quarter, continuing the softness seen throughout the year, according to Stats NZ data.
Canada’s Trade Minister gives New Zealand no assurances on dairy sales
Canada is giving no assurances it will ease New Zealand dairy access, despite rulings finding Ottawa’s policies conflict with the principles of the Comprehensive and Progressive Trans Pacific Partnership (CPTPP). But the country’s Trade Minister Mary Ng does say discussions are continuing.
Official Cash Rate cut: Reserve Bank says more cuts to come in February
The Reserve Bank has cut the Official Cash Rate by 50 basis points to 4.25%, as widely expected, and indicated another 50-basis-point cut is coming in February. But RBNZ Governor Adrian Orr has warned that high international borrowing costs mean mortgage holders may need to temper their expectations for extremely low rates.
Data set to quantify how business events benefit tourism
The Minister for Tourism and Hospitality Matt Doocey announced Business Events Industry Aotearoa (BEIA) will be the first recipient of the Tourism Data Partnership Fund at the industry body’s annual conference. The funding allows BEIA to provide research that will analyse the economic impact of multiday business events, such as by measuring attendees’ personal expenditure and the impact from extending their stays in the region or in New Zealand.
Homeowners face resale tax in new-build suburbs
The concept of taking a transfer levy from vendors to fund future developments is still rare in New Zealand, but agents told OneRoof they believe it will become more common in the coming years as councils pull back on funding parks and reserves.
New Zealand retail spending slows again, pointing to recession
New Zealand retail spending fell for a second straight quarter as high interest rates dented consumer sentiment, adding to signs the economy was in recession in the middle of the year.
Law removing future ETS agriculture obligations passes first reading
The government’s proposed law change to keep agriculture out of the Emissions Trading Scheme (ETS) has passed its first reading. The current law would have required agricultural processors to begin paying for fertiliser and livestock processing from the beginning of next year.
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