NZ: Further softening in economic growth – Westpac

Satish Ranchhod, senior economist at Westpac, notes that New Zealand’s September Quarter Survey of Business Opinion pointed to a further softening in economic growth.

Key Quotes

“Businesses are highlighting sluggish demand and low profitability.”

“While cost pressures have eased, strong competition means that margin squeeze has continued.”

“With businesses expecting economic conditions to remain soft, plans for capital expenditure and hiring have been scaled back.”

“All of this leaves the RBNZ confronting a very familiar picture of sluggish demand and lingering softness in inflation. That reinforces our expectations for a November rate cut.”