NZD: Q2 GDP grows at 0.9%/qtr, misses expectations - TDS

Research Team at TDS, suggests that the NZ’s Q2 GDP report at 0.9%/qtr may have missed the market’s 1.1%/qtr f/c but upward revisions to Q1 meant that GDP for the year rose +3.6% as per expectations.

Key Quotes

“Really hard to find a fault here, private consumption grew at a staggering 1.9% in Q2 and construction expanded 5% and strong international demand saw exports increase 4.0%, with exports of goods posting its biggest quarterly increase in nearly 20 years. With such strong number, we expect the market to question the need for cutting rates further. We maintain our Nov rate cut call, but today’s numbers throw further doubt beyond that.”