In the Monthly Economic Indicators report, New Zealand Treasury warned that “continued weakness in business confidence to weigh on domestic economic growth”, “renewed US-China trade tensions lead to significant market volatility”. Also, “global slowdown in manufacturing continues, but shows little sign of spilling over into services”.
The report noted that “manufacturing sector indicated contractionary sentiment for the first time since August 2012” while ANZ Business Confidence fell further. And, “continued general business pessimism has increased the downside risk for our near-term GDP growth forecasts, but there are tentative signs that the downward trend in confidence may have stabilised.”
Released from New Zealand, terms of trade index rose 1.6% qoq in Q2, up from 1.0% qoq and beat expectation of 1.0% qoq.
