Welcome to the September 8 issue of the BNZ Weekly Overview.
Many thanks to those people who responded in our monthly Confidence Survey and also licensed real estate agents who
responded in our BNZ-REINZ Residential Market Survey. The results show high confidence about the economy in a year’s
time, still generally cautious business conditions currently, and an improving housing market with more and more first
home buyers, only a few more investors, and potential vendors thinking about placing their properties on the market.
This week we have not learnt much fresh about the NZ economy beyond the second quarter in a row of 6.6% shrinkage in
construction. Offshore the story has been one of rapidly falling markets in the first part of the week on deepening
worries about the US economy (no jobs growth) and the European sovereign debt situation. Pessimism has eased off over
the past two nights but it seems inevitable that it will return and generate continued volatility in the NZD whilst
limiting the extent to which medium to long term NZ interest rates rise in the near future.
This week at www.tonyalexander.co.nz we have added just our weekly column., the two survey reports, plus some comments
delivered at the Forestry Expo in Rotorua.