NZ Treasury: Don't expect activity to have picked up much in the latest quarter

The latest economic assessment from the New Zealand (NZ) Treasury showed on Tuesday that they “don't expect activity to have picked up much in the latest quarter.”

Additional takeaways

The June quarter GDP fell by 0.2%, less than expected, with population growth masking economic weakness.

With a significant amount of data due in the next fortnight, we should know more about where we are at in the cycle.

Consumer and business expectations are improving, indicating a potential economic bottoming.

The current account deficit remained high at 6.7% of GDP due to slow recovery in service exports and strong import volumes.

OECD forecasts stable global growth, with easing inflation and supportive policies in China and the US.

US and China implemented policy easing to support their economies.

Market reaction

NZD/USD was last seen trading at 0.6340, down 0.09% on the day, slightly undermined by the above headlines.