NZ: GDP likely to rise 0.6% for the June quarter – Westpac

Westpac analysts are expecting the New Zealand GDP to rise by 0.6% for the June quarter, matching the pace seen in the previous two quarters.

Key Quotes

“Service sector activity looks to have picked up after a particularly soft patch in the March quarter, while construction, mining and food manufacturing are likely to have eased back.”

“Our GDP forecast is slightly above the Reserve Bank’s forecast and at the upper end of market forecasts.”

“A result in line with our view is unlikely to move the dial for the RBNZ. We expect no change at the September OCR review, but a further cut in November.”

“We expect the annual current account deficit to narrow to at 3.4% of GDP, subject to the impact of annual data revisions. Exports picked up in the quarter while imports were flat.”