ANZ's Truckometer showed heavy traffic movements rose 1.8 percent in July on the month before. Photo: RNZ / Marika Khabazi
The economy is trying to shift out of low gear, as a key production indicator posted gains last month.
ANZ's Truckometer showed heavy traffic movements - an indicator of current activity - rose 1.8 percent in July on the month before and is up 2.8 percent on last year.
The light traffic index - a measure of consumer behaviour looking six months ahead - rose by 1.4 percent in July and is up 0.9 percent on last year.
ANZ chief economist Sharon Zollner cautioned that the rebound followed on the heels of a tough second quarter.
"The trend in light traffic has been only very mildly upward over recent months," she said. "In per capita terms, light traffic is going sideways."
"In Q2, the heavy truck index was down 0.1 percent, adding to the list of activity indicators suggesting the economy may have shrunk in Q2, but at least Q3 is off to a more positive start."
Zollner said the data highlighted the "two-speed" nature of New Zealand's economic recovery.
"The agriculture sector in particular, and goods-producing sectors in general, are outperforming the consumer sector," she said.
"Things like retail and hospitality are doing it particularly tough at the moment."
Zollner said while the data can be volatile, it is consistent with their forecast of a slow recovery over the second half of the year, especially as consumers move to lower mortgage rates.
She said the slower-than-expected recovery would need support though, via lower interest rates.
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