Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes to report today.
DEPOSIT RATE CHANGES
None here either.
LOOKING UP
Analysts say following today's dairy auction that current price trends bode well for the forthcoming season which starts on October 1, 2017. ANZ economists now pick an opening forecast milk price of $6.75 per kilogram of milk solids following the fifth consecutive rise of prices at the GlobalDairyTrade auction. The price for the current season is likely to be around Fonterra's $6/kgMS.
PRODUCTION SPURT
The latest data on the New Zealand dairy milk production levels shows a late season spurt higher and Fonterra's detailed release confirms it has extended on into April. Warmer weather has improved grass growing conditions.
JOB OPENINGS FALL FOR SHINY-BUMS
In April, MBIE's official monitoring of job ads shows vacancies increased in five out of eight industry groups. The biggest contributors were construction and engineering (up +2.0%), hospitality and tourism industry groups (up +1.7%). The biggest fall was for accounting, human resources, legal and administration (down -1.2%). Over the year, growth was spread across six out of eight industry groups with only the accounting/HR/legal/admin group and the IT group showing year-on-year declines.
UP, BUT SLOWING?
Producer output prices rose +1.4% in the March 2017 quarter, while input prices rose +0.8%, Stats NZ said today. Both represent lower levels of increases than were recorded in the December 2016 quarter. But the year-on-year pace is increasing and is in fact back to gains last seen in 2014 with both up over +4% on this basis.
IT'S POURING IN AUCKLAND
Stats NZ also released the March quarter readymix concrete data today, and the data for Auckland is impressive. The March deliveries amounted to 242.9 m3 in metropolitan Auckland, up +11.5% above the 217.3 m3 in the same quarter a year ago. That is impressive because the y-on-y data is now in a long series of records that stretch back to late 2012 with only one exception. The data for Wellington and Christchurch are more subdued. Readymix concrete deliveries have been falling for two successive quarters in Wellington, and falling for six successive quarters in Christchurch.
REAL WAGES TURN NEGATIVE
In Australia, the expected low level of pay increases came through in their March 2017 data. That puts them on track to be in a situation where PCI prices are rising faster than pay, a rare situation in the 'lucky country'. The annual rate of pay rises in the March quarter was just +1.8% whereas their April CPI rise was +2.1%. The latest equivalent data for New Zealand is pay increases of 1.5% and CPI increases of +2.2%.
CONSUMERS NOT SO HAPPY
The Westpac-Melbourne Institute survey of Australian consumer sentiment fell -1.1% from April, when it slipped 0.7%. That left the index at 98, one point from the previous month. Anything below 100 signals the pessimists outweigh the optimists in their outlook on the economy. Their consumer confidence index has held below 100 since December. The latest equavlent NZ Westpac consumer sentiment report for New Zealand has the index here at 111.9.
NO CHANGE
Standard & Poor's has affirmed Australia's AAA credit rating after their recent Budget.
WHOLESALE RATES SLIP AGAIN
Swap rates can't hold on to yesterday's gains and are slipping again today. For two years they are down -1 bp, for five years they also are down -1 bp and for ten years they are down -3 bps. The 90 day bank bill rate is also down -1 bp to 1.98%.
NZ DOLLAR UNCHANGED
The NZD is unchanged at 69 USc. On the crosses we are at 93 AUc, and 62.1 euro cents. The TWI-5 is still at 73.5.
You can now see an animation of this chart. Click on it, or click here.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.