Truckometer suggests economy 'rapidly losing momentum'

Stronger economic growth is likely in Q4 but will probably taper off early next year, the latest ANZ Truckometer indicators show.

The Truckometer analyses data from the movements of light and heavy vehicles, using the results to predict economic activity six months out.

Heavy vehicle traffic tends to indicate current economic activity, while flow for lighter vehicles is a good indicator of future growth or decline.

The latest report for October shows the heavy traffic index rose 4.5%, suggesting a rise in GDP for Q4.

Light vehicle traffic rose 1.5%, also indicating some improvement in economic growth in Q4.

Put together, however, the results suggest the "economy is losing momentum fairy rapidly from its current respectable 2.5% pace", the report says.

"The headwinds the economy is facing would make such as slowdown quite understandable."

It says that, based on the light vehicle traffic index, growth will be considerably slower into early next year, compared to the relatively strong growth seen in the first half of this year. 

The latest results confirm the trend identified in last month's Truckometer


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6988 0.0000 0.00%
AUD 0.9369 0.0000 0.00%
EUR 0.6375 0.0000 0.00%
GBP 0.5339 0.0000 0.00%
HKD 5.4285 0.0000 0.00%
JPY 74.0790 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1323.4 -8.590 2016-07-22T00:
Oil Brent 46.1 -0.800 2016-07-22T00:
Oil Nymex 44.2 -0.500 2016-07-22T00:
Silver Index 19.7 -0.130 2016-07-22T00:

Indices

Symbol Open High Last %
NZX 50 7214.1 7246.6 7214.1 0.17%
NASDAQ 5078.1 5103.5 5073.9 0.52%
DAX 10130.5 10181.2 10156.2 -0.09%
DJI 18524.2 18571.3 18517.2 0.29%
FTSE 6699.9 6735.9 6699.9 0.46%
HKSE 21913.0 21972.9 22000.5 -0.16%
NI225 16612.9 16691.8 16810.2 -1.09%
ASX 5512.6 5512.6 5512.4 -0.26%