NZ: Slowing growth – TD Securities

Analysts at TD Securities suggest that their Q2 GDP forecast for New Zealand economy is in line with the RBNZ’s 0.5%/q forecast, placing annual growth at 2%, the slowest since Q4 2013.

Key Quotes

“This outcome should see the RBNZ keep the cash rate on hold later in the month. Soft real retail sales, lower construction and manufacturing are likely to slow growth over the qtr. Service industries had recorded their lowest qtrly growth in Q1 since Q3 2012, but we anticipate a bounce, supporting our GDP forecast.”