New Zealand gross domestic product (a measure of economic growth) for the final quarter of 2016
0.4% q/q - A MISS
- expected +0.7% q/q, prior +0.8%, revised from +1.1%
2.7% y/y - A MISS
- expected 3.2% y/y, prior 3.3%, revised from 3.5%
The 'rock star' economy keeps on rockin', just turning down the volume a little last quarter. Note the revision down for Q3 2016 included in the release (one for the ancient history buffs)
From Stats NZ (bolding mine):
- Growth in service industries was partly offset by weaker activity in primary industries also flowing through into manufacturing
- Only half of our 16 industries rising
- Service industries continued to grow, increasing 0.7 percent in the December 2016 quarter. The main drivers were business services; arts, recreation, and other services; and health care and residential care
- Agriculture fell 0.6 percent due to lower milk production. This, coupled with falls in forestry and mining, were reflected in lower manufacturing activity and lower primary exports
- Manufacturing fell 1.6 percent, driven by falls in food, beverage, and tobacco manufacturing, and in transport equipment, machinery and equipment manufacturing
- Exports fell due to lower exports of dairy products; metal products, machinery and equipment; crude oil; and logs and timber
- Household spending growth tapered off this quarter, increasing 0.4 percent after two consecutive quarters of strong growth
- While there was a smaller increase in household spending, tourist spending was strong, up 5.1 percent
NZD/USD took a small hit, towards 0.7000:
A drop in NZD/USD translates into lower NZ on the crosses too. The NZ GDP release does not, for example, have much impact on USD/JPY ... traders of the yen give very little, umm, figs, for NZ GDP results .... anyway, so like I said, lower NZD/USD means lower NZD on the crosses. The fall is not large, so perhaps not high fives at the RBNZ (who'd like a lower NZD), but maybe a smirk or two... there wouldn't have been any given the NZ response to the FOMC rate hike overnight.
more to come