Monthly Economic Indicators August 2015

The August Monthly Economic Indicators (MEI) was published today on the Treasury Website at 2:00pm. The report provides a summary of recent economic events.

The main points:

• GDP growth in the June quarter is expected to be around 0.6%, lower than the BEFU forecast. Annual growth in 2015 may fall to 2.0% as domestic demand softens.

• Weakness in retail spending as employment growth declined points to softer private consumption growth in the June quarter than previously expected.

• However, a buoyant housing market, elevated net migration gains and exchange rate depreciation are expected to continue to support growth.

• Dairy prices remained low in August, pointing to further falls in the terms of trade.

• Volatility in financial markets reflected concerns over China’s growth slowdown.

The special topic this month looks at China’s liberalisation and devaluation of its currency.

Read more at: http://www.treasury.govt.nz/economy/mei/Aug15

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