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New Zealand Economy Expands 0.8% in March Quarter

New Zealand's economy expanded 0.8% in the March quarter, following a 0.5% expansion in the previous quarter, Stats NZ data showed Thursday.The consensus forecast is for an expansion of 0.9%, according to Trading Economics.Nine out of 16 industries recorded higher economic activity in the March quarter, with manufacturing leading gross domestic product (GDP) growth at 1.9%, followed by business services and wholesale trade, according to Stats NZ."New Zealand's manufacturing industry is a large and diverse sector of the economy, making up around 8% of GDP," general manager and macroeconomic spokesperson Jason Attewell said.Mining was the largest negative contributor to GDP in the March quarter, falling nearly 12%, mainly due to a decline in oil and gas extraction, while construction fell by 1% in the March quarter."Declines in both residential and non-residential building contributed to the overall fall in construction activity in this period," Attewell said.GDP per capita rose 0.5% in the March quarter.The expenditure measure of GDP rose 1% in the March quarter, following a 0.4% increase in the previous quarter, with imports and exports volume rising 4.2% and 3.1%, respectively.Household consumption expenditure increased 0.5% in the March quarter, following a 0.1% decline in the previous quarter, driven by higher spending on audio-visual equipment, used motor vehicles, and grocery foods.Gross fixed capital formation rose 2% in the March quarter, driven by higher business investment in fixed assets, particularly plant, machinery, and equipment.In the year ended March, GDP rose 0.8% compared with the year-earlier period.

New Zealand GDP Up 0.8% in March Quarter, Annual GDP Growth also at 0.8%

New Zealand Shares Fall Slightly; Fletcher Building Reduces Net Debt, Plans to Withdraw Credit Rating at Moody's

New Zealand shares ended lower on Wednesday, following shares on Wall Street downwards.The S&P/NZX 50 Index fell 0.25%, or 33.15 points, to close at 13,392.98.On Tuesday, the Nasdaq Composite fell 1.15%, the S&P 500 was down 0.57%, and the Dow Jones rose 0.64% on close. Investors are awaiting the first US Federal Reserve meeting under new Chair Kevin Warsh.In domestic news, the New Zealand consumer confidence fell 14.3 points in the June quarter to 80.4 from 94.7 in the previous quarter, marking its lowest level since 2023, according to the Westpac-McDermott Miller Consumer Confidence index.New Zealand's current account deficit widened to NZ$4.55 billion in the March quarter, from NZ$4.45 billion in the previous quarter, Stats NZ data showed.In corporate news, Fletcher Building (ASX:FBU, NZE:FBU) is moving to withdraw its credit rating at Moody's as the company has made progress in its transition to a more stable capital structure. Following the divestment of its construction division and other property sales, Fletcher expects to be at the midpoint of its NZ$400 million to NZ$900 million net debt target range as of June 30.Seeka (NZE:SEK) expects 2026 net profit before tax in the range of NZ$38 million to NZ$42 million, compared with NZ$47.5 million in the previous year. The company issued its first earnings outlook for the year after the completion of the 2026 kiwifruit harvests across New Zealand and Australia, noting that kiwifruit underpins its overall financial performance.

NZX Midday Sector Update: Consumer Non-Durables Stocks Jump, Communications Sector Struggles

Consumer non-durables stocks advanced nearly 2% at midday Wednesday.a2 Milk Company (NZE:ATM, ASX:A2M) gained 3% in recent trade.On the flip side, the communications sector struggled, shedding more than 1%.Chorus (NZE:CNU, ASX:CNU) shares were down nearly 2% in recent trade.

New Zealand's Current Account Deficit Widens in March Quarter

New Zealand's current account deficit widened to NZ$4.55 billion in the March quarter, from NZ$4.45 billion in the previous quarter, Stats NZ data showed on Wednesday.The current account deficit widened mainly due to a NZ$323 million increase in the goods deficit, which was partly offset by a NZ$33 million services surplus and a NZ$219 million narrowing of the primary income deficit.The seasonally adjusted goods deficit widened to NZ$1.1 billion in the March quarter, up from NZ$757 million in the previous quarter, while the seasonally adjusted services balance recorded a surplus of NZ$33 million, down from NZ$48 million in the prior quarter.The goods exports in the March quarter rose NZ$356 million to NZ$21 billion, led by rises in fruit and meat, while goods imports rose NZ$680 million to NZ$22.1 billion, driven by increases in mechanical and machinery equipment."The conflict in the Middle East started towards the end of the March quarter and had a minimal impact on fuel imports," said Jason Attewell, general manager and macroeconomic spokesperson.The services exports rose NZ$321 million to NZ$9.4 billion, led by travel services, while services imports increased NZ$336 million to NZ$9.4 billion.The current account deficit for the year ended March widened to NZ$16.3 billion, representing 3.6% of gross domestic product, compared with a NZ$16 billion deficit in the year ended December 2025.

Westpac-McDermott Miller Consumer Confidence Index Falls in June Quarter

New Zealand consumer confidence fell 14.3 points in the June quarter to 80.4 from 94.7 in the previous quarter, marking its lowest level since 2023, according to the Westpac-McDermott Miller Consumer Confidence index released Wednesday.There is increased concern about the outlook for the economy, with a level below 100 indicating that a greater number of households are pessimistic about economic conditions compared with those who are optimistic.The present conditions index declined to 73.5 from 87.9, while the expected conditions index dropped to 85 from 99.2, the report said.Consumer confidence has declined significantly in recent months as the effects of the Middle East conflict have spread through the global economy and into household finances in New Zealand.Households are feeling the squeeze as rising fuel and living costs, higher borrowing expenses, and mounting economic uncertainty weigh on consumer spending.Nationwide confidence has weakened, with Wellington remaining the most pessimistic region amid public sector job cuts and a soft labor market, while sharp declines in Otago and broader cost-of-living pressures weigh on sentiment across the country.A fragile geopolitical de-escalation in the Middle East has started to ease pressure on global markets, with oil prices retreating and hopes rising that economic confidence and activity could recover later this year.

Quantity Sold at GDT Auction Nearly Reaches 13,000 Metric Tonnes

A total of 12,922 metric tonnes (MT) of products were sold during the Global Dairy Trade (GDT) auction held on Tuesday, with supply ranging from 13,417 to 17,440 MT, according to data from the trading platform.The average selling price for whole milk powder was $3,589 per MT, anhydrous milk fat averaged $6,601 per MT, and mozzarella and butter averaged at $3,750 per MT and $5,516 per MT, respectively.Additionally, cheddar prices averaged $4,471 per MT, lactose averaged $1,702 per MT, and skim milk powder averaged at $3,368 per MT.

New Zealand Shares Rise; Meridian Energy Secures 35-Year Extension for Waitaki Power Scheme

New Zealand shares ended higher on Tuesday as Asian markets followed Wall Street's Monday rally, aided by confirmation of the US-Iran peace deal.The S&P/NZX 50 Index rose 0.49%, or 65.54 points, to close at 13,426.13.On Monday, the Nasdaq Composite gained 3.1%, the S&P 500 added 1.7%, and the Dow Jones rose 0.9%.In domestic news, the number of transport motor vehicle registrations in New Zealand in May, licensed for 12 months, fell to 3.8 million from nearly 3.9 million in the same period last year, according to figures released by Stats NZ.Also, petrol and diesel prices in New Zealand decreased by 3.8% and 11.4%, respectively, in May compared with the previous month, according to a Stats NZ selected price indexes report.Further, New Zealand's gross domestic product (GDP) is forecasted to have grown by 0.7% quarter-over-quarter and 1% year-over-year in the March quarter, below the Reserve Bank of New Zealand's 1% quarter-over-quarter expectation, and slightly below consensus at 0.8% quarter-over-quarter, BofA Securities said.Meanwhile, the New Zealand selected price indexes for May came in broadly as expected, reinforcing the downside risks to the June quarter consumer price index (CPI) forecast, ANZ Research said.In corporate news, Scott Technology (NZE:SCT) won a contract to supply an automated modular crush cell system to an unnamed testing, inspection, and certification provider.Meridian Energy (ASX:MEZ, NZE:MEL) secured approval by the Environment Court to continue operating the Waitaki Power Scheme for a further 35 years.

New Zealand GDP May Have Grown by 1% on an Annual Basis in the March Quarter, BofA Securities Says

New Zealand's gross domestic product (GDP) is forecasted to have grown by 0.7% quarter-over-quarter and 1% year-over-year in the March quarter, below the Reserve Bank of New Zealand's 1% quarter-over-quarter expectation, and slightly below consensus at 0.8% quarter-over-quarter, BofA Securities said in a Tuesday note.Growth is expected to be relatively broad-based, with both primary and services industries supporting the economy, although construction activity remains weak. Consumption growth is expected to be solid, but investment should weaken alongside deteriorating sentiment in the period.The GDP is likely to contract in the June quarter, given the impact of the conflict in the Middle East.The firm expects the central bank to hike the official cash rate at the July meeting to help anchor inflation expectations. Higher energy-driven inflation will drive a negative real income and growth impulse, which will further increase spare capacity through the middle of the year, all else equal, the note added.Retail sales increased by 0.9% quarter-over-quarter in the March quarter, above market expectations of a 0.5% rise. The increase was broad-based, with sales in 10 out of 15 industries rising, mainly driven by supermarket and grocery stores, homeware supplies, and accommodation. This strength in retail sales is expected to reverse in the June quarter as surging fuel prices and weaker confidence weigh on households.

New Zealand May Selected Price Indexes Reinforce Downside Risks to Q2 CPI Forecast, ANZ Research Says

The New Zealand selected price indexes for May came in broadly as expected, reinforcing the downside risks to the June quarter consumer price index (CPI) forecast, ANZ Research said in a note on Tuesday.Food prices, accounting for nearly 19% of the CPI basket, rose 1% month over month, stronger than ANZ's outlook for a 0.3% increase. ANZ said the shock to global fertilizer supply stemming from the Middle East conflict, alongside higher freight costs, will likely add to global food price inflation.ANZ downgraded its second quarter CPI projection to 1.5% from 1.8% quarter over quarter. This would see annual inflation come in at 4.1%, down from its previous forecast of 4.4%.The medium-term inflation outlook will be a function of both the degree of demand destruction and inflation inertia stemming from the global supply shock caused by the Middle East conflict, ANZ said.The Reserve Bank of New Zealand is expected to hike the official cash rate by 25 basis points in July as the central bank prioritizes ensuring that the current surge in inflation does not broaden into core inflation over the medium term, ANZ added.

NZX Midday Sector Update: Miscellaneous Sector Soars, Communications Stocks Struggle

Miscellaneous shares gained the most on New Zealand's Exchange, rising past 4% on Tuesday.Shares of Marlin Global (NZE:MLN) surged more than 4% in recent trade.Meanwhile, communications shares fell nearly 2%.Shares of Spark New Zealand (NZE:SPK, ASX:SPK) drove the decline, falling roughly 3% in recent trade.

New Zealand Transport Motor Vehicle Registrations Fall in May

The number of transport motor vehicle registrations in New Zealand in May licensed for 12 months fell to 3.8 million from nearly 3.9 million in the same period last year, according to figures released by Stats NZ on Tuesday.Currently licensed transport and passenger motor vehicles across the country includes almost 2.4 million cars, 634,434 trucks, 607,334 trailers and caravans, 32,486 motorcycles, 26,612 omnibuses and service coaches, and 12,868 taxis.Meanwhile, the total number of commercial vehicles in May was 3,500, down compared with last year's 3,737.

New Zealand Fuel Prices Fall in May

Petrol and diesel prices in New Zealand decreased by 3.8% and 11.4%, respectively, in May compared with the previous month, according to a Stats NZ selected price indexes report on Tuesday."The decreases in May follow rises for both petrol and diesel in March and April," said prices and deflators spokesperson Nicola Growden.Food prices rose 1% in May compared with the previous month, driven primarily by a 1% increase in grocery food prices, while fruit and vegetable prices climbed 2.5%.Domestic and international airfares fell 11.4% and 5.5% respectively in May compared with April, while electricity and gas prices increased by 1.4% and 0.5% respectively over the same period."Decreases in airfares were recorded in May, in line with historical trends for the month," Growden added.Food prices increased by 3.2% on an annual basis in May, compared with a 2.6% increase in the 12 months to April, driven mainly by a 6.9% rise in meat, poultry, and fish prices, alongside a 3.3% increase in restaurant meals and ready-to-eat food.Petrol and diesel prices both increased over the 12 months to May, rising by nearly 28.7% and 76.8%, respectively.

Asia Week Ahead: Central Bank Decisions; Inflation; and Trade

The week ahead in Asia will be packed with a number of central bank decisions and macroeconomic data, with investors set to track the impact of the Middle East conflict on regional economies.The economic calendar starts quietly on Monday with services activity data from Japan, whole inflation figures from India and New Zealand's services PMI.Activity picks up Tuesday as the Reserve Bank of Australia and Bank of Japan announce policy decisions, while China releases a batch of closely watched activity indicators.Wednesday shifts the focus to trade, with Japan and Singapore due to report May figures.Thursday brings a cluster of central bank decisions from Taiwan, Indonesia and the Philippines, with New Zealand's first-quarter GDP and Thailand's trade data also on deck.Friday rounds out the week with inflation data from Japan and Malaysia, with New Zealand reporting trade numbers.Here's what to watch in the week ahead.MONDAY, June 14The week was off to a relatively light start with a handful of releases from India, New Zealand, and Japan.Japan released its tertiary industry activity index for April, a measure of change in the total value of services provided and consumed by the country's service sector.The index rose a seasonally adjusted 1.3% month on month, reversing from a 0.6% decline in the prior month and recording its first increase in three months.It also beat the Trading Economics forecast of a 0.5% increase.In New Zealand, the BusinessNZ Performance of Services Index fell to 47.5 in May from a downwardly revised 48.7 in April, marking a fourth straight month of contraction in the services sector. Trading Economics said the decline came as the Iran war weighed on business activity.India's annual wholesale price index (WPI)-based inflation rate rose to 9.68% year over year in May. The reading was higher than the consensus forecast of 9.10% tracked by Investing.com and compared with an 8.26% pace recorded in the prior month.Later Monday, India reports unemployment stats for May.TUESDAY, June 16Macro activity picks up Tuesday with central bank decisions scheduled in Australia and Japan, and a slew of monthly data from China.The Reserve Bank of Australia is expected to hold the official cash rate steady at 4.35%, according to a Trading Economics consensus.Economists at National Australia Bank said the latest decision would mark the end of the tightening cycle, with the next move likely down and now expected in the second quarter of 2027.In contrast, the Bank of Japan is forecasted to raise interest rates by 25 basis points to 1%, according to a Trading Economics consensus estimate.Bloomberg reported earlier June that the central bank was considering raising the policy rate amid high uncertainties over the Middle East conflict. Officials were expected to sift through as much data as possible until the last minute before making a final decision, though the decision to raise rates was unlikely to be unanimous, according to the report.China's industrial production and retail sales stats will also be in the news, alongside monthly unemployment and housing price data.Markets will review the figures to gauge how well the country's economy is faring amid the Middle East conflict. According to the Wall Street Journal, the data is likely to indicate overall improvement and economic resilience despite the macro headwinds.Hong Kong will report unemployment data the same day, while trade stats will be in focus in India and South Korea.In New Zealand, markets will await food inflation data which is expected to show "modest increases," according to CommBank.WEDNESDAY, June 17Focus shifts Wednesday to trade data from Singapore and Japan.Japan is expected to record a trade deficit of 564.6 billion yen in May, reversing from a 301.9 billion yen surplus a month earlier, according to a Trading Economics consensus.Wednesday will also bring the Reuters Tankan Index for June, a key gauge of Japanese business confidence, along with monthly machinery orders data.Meanwhile, Singapore's trade surplus is expected to narrow to $7 billion in May from $13.07 billion in April, according to Trading Economics. The city-state is also due to release monthly non-oil export data.A forward-looking report from Westpac capturing consumer confidence in New Zealand is also scheduled for Wednesday.THURSDAY, June 18Central banks across Taiwan, Indonesia and The Philippines will meet for interest rate decisions Thursday.Bank Indonesia will be in focus after it unexpectedly raised interest rates by 25 basis points earlier this month to support the rupiah.While some economists expect the central bank to deliver another 25 basis point hike, ING expects Bank Indonesia to hold rates steady and instead prioritize alternative measures to attract foreign capital inflows and stabilize the currency.The Philippines' central bank, Bangko Sentral ng Pilipinas, is widely expected to raise its benchmark rate by 25 basis points to 4.75% amid persistent inflationary pressure, according to a Trading Economics consensus.Meanwhile, Taiwan's central bank is expected to hold rates steady at 2%. ING said it will be monitoring the Central Bank of the Republic of China's press conference for clues on a possible rate hike in the third quarter.Elsewhere, New Zealand will report its first quarter gross domestic product growth rate. CommBank said it expects quarterly growth to reach 0.8%, shy of the Reserve Bank of New Zealand's 1% forecast.While the economy started 2026 with a decent moment, there will be "pockets of weakness" highlighting that economic recovery was a "bit patchy," CommBank said in a preview.Lastly, Thursday will feature Thailand's trade figures for May.FRIDAY, June 19The week rounds off with closely watched inflation data from Japan.According to ING, May's consumer prices could record a rise of 1.6% year on year, accelerating marginally from 1.4% in April. The subdued increase would reflect government measures, though price pressures are likely to broaden, ING said.Malaysia's headline inflation, also due the same day, is similarly expected to show a marginal rise to 2% year-on-year in May from 1.9% in April due to government fuel subsidies and stable food prices, the Wall Street Journal reported, citing DBS.Malaysia will additionally report monthly trade figures on Friday, while Macao will release monthly inflation data the same day.Trade figures from New Zealand will also feature Friday. According to a Trading Economics consensus, New Zealand's May trade surplus could narrow to NZ$875 million from NZ$1.92 billion a month earlier.South Korea's producer price inflation will also be among the highlights of the day.

New Zealand Shares Fall; Meridian Energy Retail Contracted Sales Volumes Rise in May

New Zealand shares ended lower on Monday despite a broad-based rise in Asian shares after a Middle East peace deal was finally confirmed.The S&P/NZX 50 Index fell 0.25%, or 33.28 points, to close at 13,360.59.US and Iranian officials said they had reached a framework agreement to end the conflict, lift the U.S. blockade of Iran, and reopen the Strait of Hormuz, while Iran's nuclear program remains subject to further negotiations, Reuters reported on Sunday."The prospect of a sustained fall in energy prices changes the conversation for central banks just ahead of a flurry of policy decisions," said Sean Callow, a senior FX analyst at ⁠ITC Markets, as quoted by ReutersIn domestic news, New Zealand's services sector contracted further in May as weak consumer demand and rising costs continued to weigh on activity, according to a statement by BusinessNZ.Also, supplier costs for food supermarkets in New Zealand rose in May, marking an increase in the pace of growth after half a year of a slowdown, Infometrics said.Further, New Zealand's electronic card spending rose 2.2% month over month to NZ$9.85 billion in May on a seasonally-adjusted basis, compared with the 1.9% decrease recorded in the previous month, according to data from Stats NZMeanwhile, the volume of national home sales in New Zealand fell 12.6% year over year in May to 6,523, while the median sale price ticked 1.3% higher to NZ$775,000, according to data by the Real Estate Institute of New Zealand.In corporate news, Meridian Energy's (ASX:MEZ, NZE:MEL) retail contracted sales volumes rose to 860 gigawatt hours (GWh) in May from 798 GWh a year earlier.Air New Zealand (NZE:AIR, ASX:AIZ) said Saturday it expects services in and out of Wellington airport to mostly start operating as scheduled on Saturday, June 13, following a fire incident on the night of Friday, June 12.

New Zealand Food Supermarkets' Supplier Costs Rise in May With Further Increase Expected, Infometrics Says

Supplier costs for food supermarkets in New Zealand rose in May, marking an increase in the pace of growth after half a year of a slowdown, Infometrics said in a Monday report.The Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index showed an average increase of 2.2% from a year earlier."May also saw a sharp rise in the number of products increasing in cost, as the early signs of higher input costs due to the Middle East conflict become more apparent," Brad Olsen, Infometrics Chief Executive and Principal Economist, said.Supplier costs rose across all departments in May year-over-year, with notable large cost increases for frozen processed chicken, butter, and milk. Fruit juice, potato chips, coffee, lettuce, and tomatoes in the grocery and produce departments also saw notable cost increases."Only a small number of increases were directly attributed to fuel adjustment factors, with a larger number expected to be recorded in June," he added.Over 3,900 products increased in cost from April month over month, with the 12-month average rising back over 3,000 per month."The number of increasing costs in May was the highest monthly total in a year, reflecting the first increases due to the Middle East conflict flowing through supply chains. The grocery and seafood departments saw the largest number of cost changes compared to the number of changes seen in recent months," Olsen said.

NZX Midday Sector Update: Distribution Services Rise, Utilities Decline

Distribution services shares gained the most on New Zealand's Exchange, rising almost 3% by midday Monday.Shares of Vulcan Steel (NZE:VSL, ASX:VSL) rose nearly 3% in recent trade.Meanwhile, the utilities sector shares fell past 1%.Shares of Meridian Energy (NZE:MEL, ASX:MEZ) drove the decline, falling almost 2% in recent trade.The company said on Monday that its retail contracted sales volumes rose to 860 gigawatt hours (GWh) in May from 798 GWh a year earlier.

New Zealand Electronic Card Spending Rises in May

New Zealand's electronic card spending rose 2.2% month over month to NZ$9.85 billion in May on a seasonally-adjusted basis, compared with the 1.9% decrease recorded in the previous month, according to data from Stats NZ on Monday.Retail spending rose 1.7% to NZ$7.11 billion, following a 1.2% decrease in April.Core retail spending, which comprises consumables, durables, hospitality, and apparel, rose 2.2% to NZ$6.38 billion, following a 1.7% decrease in the previous month.Services spending via electronic cards inched up 0.2% to NZ$388 million, compared with 2.6% decrease in the previous month. Excluding services, spending in non-retail industries rose 2.6% to NZ$2.34 billion, following a 3.7% decrease in the previous month.

New Zealand House Price Index Shows Steady Overall Trend, ANZ Says

The Real Estate Institute of New Zealand house price index recorded a 0.2% month-on-month increase in May in seasonally adjusted terms, alternating between small increases and falls over the past six months, showing a steady overall trend, ANZ said in a report on Monday.The housing data is a touch stronger than expected and indicates potential upside risk to ANZ's forecast of a 2% price decline over the year, while broader housing market indicators remain weak.Sales volumes fell 2.2% month on month in May, the third monthly fall in a row, indicating that buyers remain cautious.Meanwhile, median days to sell rose to 46 in May from 45 the previous month as buyers consider their options.House prices are expected to remain stagnant in the near future with rising interest rates and a subdued starting point, per the report.