September 2018
The hardest part of the cycle
The New Zealand economy is in the more challenging phase of the economic cycle. The easier growth that comes as spare capacity
is gradually absorbed has turned to the hard grind of capacity constrained growth.
Business confidence has continued to slide into darkly depressive territory, though firms’ own activity outlook remains marginally positive. The blame for the lack of confidence is mostly sheeted home to the Labour-led Government. We think it is more complex than that, and at least in part reflects the fact that growth is just harder work now. This would have been the case no matter who was in Government …