The headline to the post is my take on the NZ data earlier today:
- New Zealand terms of trade for Q4 2018: -3.0% q/q (expected -1.0%)
- New Zealand Building Permits for January: +16.5% m/m (prior +5.1%)
While the terms of trade showed a big drop, much bigger than expected, the data is for Q4 and since then dairy, a big NZ export, has gained in price.
The building consents data is for January, so not quite as dated and that was a big, big beat.
Response to the permits data via ASB (bolding mine):
- The housing construction industry is set for a very busy start to the year as annual NZ housing consents reach the highest level since the mid-70s. We expect housing construction demand to hold up at high levels this year in order for housing supply to catch up to demand
Wow, since the middle of the 1970s!
What were you doing (if alive) in the mid 70s?
This?
