The New Zealand economy likely contracted in the June quarter as demand weakened and businesses laid off staff, the New Zealand Institute of Economic Research (NZIER) says. Christina Leung, the research firm’s deputy chief executive, said the survey data suggested there would be another quarter of economic contraction this year -- likely in the June quarter. During 2021 and 2022, a majority of firms reported the labour shortage was the biggest constraint on their trading activity. “The easing in these indicators suggests higher interest rates are continue to gain traction in reining in inflation in the New Zealand economy”. Across the entire survey, a net 23% of firms reported increasing prices during the quarter but that number has fallen dramatically from a net 70% a year ago.
