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ANZ New Zealand Business Outlook: Getting there
The May ANZ Business Outlook survey shows firms feeling the strain, but overall, it was encouraging for the RBNZ. The manufacturing sector was, surprisingly, much chirpier this month, but the services sector is now feeling the chill as the economic slowdown broadens. It's all part of the RBNZ’s plan. We’re optimistic that they’ll be able to cut the OCR earlier than they expect as slowing domestic demand continues to weigh on CPI inflation pressures. Reported past activity, which has the best correlation to GDP, remains weak at -18%. Smoothing through the monthly volatility with a 3-month average (figure 2) ... (full story)