Hon Bill English
Minister of Finance

7 December 2009
Media Statement

Latest economic indicators paint mixed picture

The Treasury’s latest monthly economic indicators today provide a mixed view of the economy and reinforce risks around the shape of the recovery, Finance Minister Bill English says.

“As we have said, there are some positive signs as we emerge from the recession, but the road to recovery will be bumpy.

“The Government understands the challenges facing households and businesses. That’s why we’ve taken a comprehensive set of measures to firstly help New Zealanders through the recession and to then build economic growth over the next three to five years,” he said after the economic indicators for November were issued today.

“It will take time for the number of people employed to increase – even as economic growth picks up. That means households will respond reasonably cautiously to signs of recovery.

“As we saw last week in the Government’s financial statements for the first four months of the financial year, the deterioration in the labour market and challenging business conditions are also having a significant impact on Government tax revenue.”

It was encouraging that business confidence had improved, with firms’ expectations of their own trading conditions at their highest level since 2002.

“Overall, these latest economic indicators confirm there are risks surrounding the recovery. In addition to weak employment and salary and wage growth, a fall in capital goods imports in the past year points to weak business investment activity in the coming year.

“With this in mind, the Government remains focused on doing everything it can to support existing jobs and giving businesses the confidence to invest and create new jobs,” Mr English says.

Economic indicators: http://www.treasury.govt.nz/economy/mei/nov09

ENDS

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