Economic Reports.

New Zealand’s Covid 19 defences were breached by the Delta variant on August 17.

The Quarterly Survey of Business Opinion reflected buoyant local conditions with shortages of labour a constraint for many businesses.

The New Zealand economy has navigated the disruption of the Covid 19 outbreak successfully to date.

The New Zealand Government’s budget for the coming year was revealed last month. The budget was of greater importance to investors this year as it was the first budget in which the Labour Party was able to implement its policies unencumbered by the competing demands of coalition partners.

All around the globe price inflation is evident. In China and the United States Producer Price indices have increased.

Inflation and interest rate outlooks continue to dominate investor strategy. Greater optimism as to the economic outlook outside of New Zealand has led to an increase in inflation expectations and with it a lift in long-term interest rates despite Central Banks leaning against this by continuing loose monetary policy.

The New Zealand share market fell in the month of February in index terms by approximately 7%. This fall occurred despite New Zealand listed companies reporting very satisfactory results.

COVID-19 has had a global resurgence with new mutations of the virus adding to the second wave impact. This resurgence has delayed the reopening/normalisation of economies.

The COVID 19 virus is having an enduring impact on investment markets.

The New Zealand share market experienced a positive performance in October with the S&P/NZX 50 gross index up 2.9% for the month.