NZ economy performing despite global jitters

Forward-looking indicators show the New Zealand economy continuing to improve despite nervousness in global markets, according to the BusinessNZ Planning Forecast for the September quarter 2011.

The BusinessNZ Planning Forecast incorporates BusinessNZ’s Economic Conditions Index (ECI) which tracks 33 indicators, including GDP, export volumes, commodity prices and inflation, debt and confidence figures.

The manufacturing and agricultural sectors are both showing relatively strong growth, and domestic and household confidence data continue to improve.

However, mounting government debt and fiscal deficits raise prospects of a credit rating downgrade if government spending is not reined in.

The BusinessNZ Planning Forecast for the September 2011 quarter is here on www.businessnz.org.nz