NZ: Household spending growth has taken a step down – Westpac

Satish Ranchhod, senior economist at Westpac, explains that the New Zealand’s household spending growth has taken a step down, slowing to an estimated pace of 4.5% over the past year, down from a peak of 6.7% per annum in late-2016.

Key Quotes

“After rapid increases in previous years, household spending growth shifted down a gear over 2018.”

“The early part of this year is likely to see a modest pickup in spending growth, with low mortgage rates and a firming in the housing market helping to bolster spending appetites.”

“Looking at the longer-term trends in spending, we expect to see moderate growth of around 5% per annum through 2019 and 2020.”