The September Monthly Economic Indicators (MEI) was published on the Treasury Website at 2pm.
Growth in the June quarter was higher than forecast in the Pre-election Economic and Fiscal Update with strong
non-residential investment contributing to the strength in domestic demand. The strength in domestic demand, coupled
with subdued export performance, resulted in a widening of the current account deficit. August trade data points to a
further increase in the current account deficit. In addition inflation is increasing. We still predict that the
imbalances will gradually unwind in a fairly benign manner. However, if imbalances materially increase, the possibility
of the economy taking a more disruptive adjustment path increases.
Read more at http://www.treasury.govt.nz/mei/default.asp
ENDS