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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Tourism Association head Chris Roberts explains why the accommodation industry will fight 150% council rates rises
- Competition lawyer Andy Matthews' rates Spark's chance of success with its Skyfone legal challenge
- Kiwibank CEO Paul Brock on rising mortgage book, falling profit
- Thincats’ Sunil Aranha on how Harmoney could cope in the competitive Australian market
- Nevil Gibson says Fitch Ratings has moved its main risk to the economy from dairy returns to house prices