Monthly Economic Indicators for May 2017

The Monthly Economic Indicators for May 2017 are now available on the Treasury website:http://www.treasury.govt.nz/economy/mei/may17.

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Executive Summary

Employment growth led to a lower unemployment rate of 4.9%

House prices were fairly flat, while sales and consents fell

Dairy export values were up 35% from a year ago and Fonterra increased its Farmgate Milk Price

High net migration, visitor numbers and employment growth led to retail sales growth of 1.5% (sa) in March

Internationally, support for interest rate rises is increasing in the US and EU, though ECB officials continue to downplay expectations.

The number of people employed rose by 29,000 (1.2%) in the March quarter and migration driven population growth saw the labour force increase by 23,000 people (0.9%). With employment growth outstripping labour force growth, the number of unemployed declined and the unemployment rate fell from 5.2% to 4.9%. However, there was little sign of wage pressures building, and while employment rose, a large proportion was in part time roles, with total hours worked falling 0.6% (sa).

House prices were fairly flat, while sales and consents fell in April. Annual net migration remained at 71,900, and the May ANZ business confidence index for residential construction lifted 12% to a net 45%, providing some support

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