Economy

Record high prices for lamb helps NZ’s commodity export prices to rise

NZ’s commodity

New Zealand’s commodity export prices increased for the second consecutive month due to the record high prices for lamb. 

In the month of April a 2.5% hike in ANZ product Price Index is the largest in nearly two years.

Last month the price of eight commodities increased. While apples and seafood dropped, two others were flat. 

Aluminum had the biggest rise by 6.6% for the month and lamb followed it, up by 6.4%to a record high.  

Faster growth noticed in public sector wages by latest NZ Labor Cost Index

Faster growth noticed in public sector wages by latest NZ Labor Cost Index

It has been specified by the Statistics New Zealand Labor Cost Index released today that a much faster growth was noticed in public sector wages as compared to private sector wages in the last year.   

An increase of 3.3% in salary and wage rates (including overtime) in the year to the March 2009 quarter was recorded by the index, which comes as lesser than the revised increases of 3.5% and 4% in the years to the December and September 2008 quarters, respectively.

Upturn in Auckland housing market pointed by figures

Barfoot & Thompson

The city's largest real estate agency group, Barfoot & Thompson has informed that April was comparatively strong month for house sales volume and said that the strength is another encouraging sign of market recovery.

809 sales in April at an average price of NZ$502,726 was reported by Barfoot and Thompson.

The sales recorded in the year 2006 and 2007 were still higher than the number of sales over the month, which recorded 829 and 899, respectively. In April 2008 the sales were 453 recorded by Barfoots.
 

Cash rate left by RBA at 3%

Reserve Bank of Australia

Despite further signs of deterioration in the economy, the Reserve Bank of Australia (RBA) has left the cash rate unchanged that could witness the unemployment rate hit six per cent this week.

The cash rate has been widely tipped by economists and financial markets, being left at a 49-year low of 3.0 per cent following Tuesday's monthly RBA board meeting in Sydney.

In the month of April the central bank reduced rate by 25 basis points, bringing total reductions since September to 425 basis points.

NZIER sees the government's nine-day fortnight scheme as an expensive waste

NZIER

If adhered to the New Zealand Institute of Economic Research latest report, the government's nine-day fortnight scheme may just be an expensive waste.

Today, a discussion document was released by the economic consultancy that focused at the most effective means of dealing with the rising unemployment rate.

The document said international research has shown direct job subsidies to be expensive and tended to be extremely inefficient at creating or retaining actual jobs.
 

Survey shows; more farmers getting pessimist

New Zealand farmers

New Zealand farmers are quite concerned over commodity prices and global market issues and many of them hold a viewpoint that the agricultural economy would worsen in the next 12 months. A new survey has put forward that there has been a 4% increase to 33% in those who think agricultural economy would worsen in the next 12 months, up from 29% at the last survey.

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