New Zealand Economy Shows Patchy Recovery Signs

The New Zealand economy is showing some signs of recovery, but it's patchy and lacks 'robust animal spirits', according to recent reports. Kiwibank chief executive Steve Jurkovich noted that while a lower New Zealand dollar is boosting tourism and exporters, the construction sector remains at an extremely low level.

Fletcher Building recently reported that it doesn't expect a meaningful recovery in underlying volumes until calendar year 2027. Vulcan Steel and Steel & Tube are scheduled to deliver their annual results next week, which should provide more insight into the industry's prospects.

Statistics New Zealand reported that tourism arrivals were up 9% to 3.67 million overseas visitor arrivals for the year ended June, but population gains from net long-term arrivals have declined from a 24,000 annual pace earlier this year to 18,000.