NZIER Consensus Forecasts shows a softer growth outlook

Abstract

The latest NZIER Consensus Forecasts expects a slight downward revision to the growth outlook for the next two years. Expectations of weaker household and Government spending over the next two years drive much of the moderation. Household spending has been very strong in recent years, but there are signs this is starting to slow as consumer confidence eases. Meanwhile, the outlook for investment has been revised up for the coming year. This is largely a timing issue – forecasters now expect a faster ramp up in residential construction, but weaker activity in subsequent years.