A review of things you need to know before you go home on Friday; deposit rate changes; NZ PMI; economic outlook; labour force; skills shortages; tourism funding; bond issue; swaps and NZD lower

Here are the key things you need to know before you leave work today:

MORTGAGE RATE CHANGES
No changes to report here.

TERM DEPOSIT RATE CHANGES
Westpac has reduced its term deposit rates for 8 mnths and 1 yr by -20 bps to 3.30% and 3.50% respectively.

BUSINESS NZ PMI
The PMI data, released by BusinessNZ, shows a marginal increase to 57.5 from 57.3, in seasonally adjusted terms. In actual terms, however, the PMI has spiked from 59.2 to 62.5. All subcomponents of the actual PMI were up, with production activity showing the largest gain. In terms of the regional subcomponents Northern New Zealand and Otago were slightly lower, whereas, Central New Zealand and Canterbury were significantly higher. In seasonally adjusted terms, all subcomponents except new orders were higher.

ANZ NZ ECONOMIC OUTLOOK
ANZ economists see the New Zealand economy navigating some headwinds and increased odds of a growth wobble. They say that beyond the housing market, two key growth drivers – construction and migration, have peaked or are close to peaking. While other growth drivers are expected to emerge, such a transition may cause some wobbles. The economic cycle is not quite at its end though and there are a number of stimulatory factors that may help the New Zealand economy. These include easing financial conditions, a far more stimulatory fiscal policy, an elevated terms of trade and a solid global economic backdrop.

NZ LABOUR FORCE
As per Statistics New Zealand, the New Zealand labour force is expected to keep growing, driven by increasing population and people working into older ages. Currently there are 2.6 million people in the labour force, which includes both the employed and people looking for work. The labour force is expected to be at 3.0 mln in 2030 and 3.5 mln in 2068. Participation of people in their 60s is currently 59% but expected to grow to 64% in 2038 and 67% in 2068.

SKILLS SHORTAGES
Seven building occupations have been added to the Immediate Skill Shortage List (ISSL) to help the building industry cope with skills shortages and to help the Government in its KiwiBuild endeavour. Employers whose occupations are on the ISSL and the Long Term Skill Shortage List (LTSSL) do not need to go through the labour market process and do not need to prove they cannot find a New Zealander for the job. A total of 34 occupations have been reviewed this year and, in addition to the seven building occupations, motor industry related professions, accountants and midwives have been added to the ISSL.

TOURISM FUNDING
The Government has announced $14.9 mln worth of funding for tourism related projects. $14.2 mln will be allocated to 30 visitor-related infrastructure projects, such as carparks, walkways and toilets, and four feasibility studies. A further $700,000 will be invested in the upkeep of seven Great Rides of Nga Haerenga, the New Zealand Cycle Trail, which have delivered $37.4 mln per year of economic benefit to communities around the country.

NZGB APRIL 2025s
The New Zealand Debt Management Office has issued $200 mln worth of nominal bonds bearing a 2.75% coupon rate and maturing on 15 April 2025. The issue saw the highest level of demand in the last six months, with a coverage ratio of 3.86x. The weighted average yield for the issue was 2.56%.

WHOLESALE RATES LOWER
The New Zealand swap rates were unchanged at the lower end of the curve, down -1 bp for 4 yrs and 5 yrs and down -2 bps for 7 yrs and 10yrs. The 90 day bank bill rate still at a record low of 1.86%.

NZ DOLLAR LOWER
The NZ dollar is lower than this time yesterday at 69.9 USc. On the cross rates we are at 91.2 AUc and 59.3 euro cents. This puts the TWI-5 at 72.8. It’s been another wild ride in the bitcoin market. Bitcoin is marginally higher from this time yesterday at US$16,981.

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End of day NY time
Source: CoinDesk