NZ Treasury: Lead indicators of activity pose a downside risk to near term growth forecasts

New Zealand’s (NZ) Treasury is out with its monthly economic indicators report, with the key highlights found below.

The economy continued to expand in the March 2019 quarter with production GDP increasing by 0.6%. 

The annual current account deficit narrowed as the goods and incomes balances improved, partly offset by a deterioration in the services balance. 

Primary exports provided a further boost to the merchandise trade balance in May and dairy export prices should strengthen in coming months. 

However, forward-looking indicators of activity are mixed, and pose a downside risk to near term growth forecasts.