NZ: Strong Q1 GDP likely - TDS

According to analysts at TD Securities, NZ Q1 GDP is set to be a strong one in GDP(E) terms.

Key Quotes

“Retail sales was +0.7% q/q, dwelling construction was +4.3% q/q and non-residential construction a blockbuster +9% q/q. There tends to seasonal weakness in public spending (we pencil in -0.3%pts) and we look for +0.4%pts for the trade sector.”

“Overall, GDP is set to post at least 1% q/q with our (E) tracking literally twice that. Our GDP(P) measure is more modest at +1.1% q/q, although well above consensus +0.6%, which lifts annual growth from 2.3% to 2.9%.”