Sharon Zollner, Chief Economist at ANZ, notes that the ANZ Truckometer indexes of NZ were fairly steady in July as the Heavy Traffic Index fell 0.4% m/m but annual growth continues to lift and the Light Traffic Index lifted 0.4% m/m with annual growth gradually easing.
Key Quotes
“The ANZ Heavy Traffic Index eased 0.4% m/m in July (seasonally adjusted). In broad terms growth in the index is going sideways but in the context of weaker business confidence results of late, the data provides reassurance that there is still plenty happening out there.”
“The Light Traffic Index lifted 0.4% m/m in July (sa). This index gives a 6-month lead on the direction of the economy and is best interpreted as a measure of momentum.”
“Growth in this index has been outpacing the usual relationship with GDP growth of late but the cooling in the trend is consistent with our expectation that the economy will continue to gently lose steam. However, it’s certainly not suggesting anything untoward.”
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