ANZ traffic data points to 2 pct NZ GDP growth

ANZ's Truckometer suggests economic growth is about to bottom out at 2 per cent. Photo / Northern Advocate.

ANZ said its latest "Truckometer" data confirmed its view that New Zealand's economic growth may be about to bottom out at around 2 per cent.

The bank said its Light Traffic Index fell 2.0 per cent, month-on-month, in December, while the Heavy Traffic Index fell 2.5 per cent, month-on-month, on top of a fall in November.

"Annual growth in light traffic is still lifting, but that of heavy traffic has now plateaued," the bank's chief economist, Sharon Zollner said.

She said the Light Traffic Index - the better economic indicator of the two - suggested annual GDP growth would bounce around the 2 per cent mark into the middle of next year.

"They agree that the slowdown in economic momentum may be finding a floor, consistent with our economic forecasts," she said.

"But that said, the recent lift in annual growth in the two indexes is supportive of our view that annual GDP growth is set to bottom out around the current level of 2 per cent," she said.

The Light Traffic Index suggested modest positive GDP growth outturns over the next six months.

ANZ's traffic data, along with other data, pointed to an increase of 0.5 per cent in the December quarter.

Latest Stats NZ data showed economic activity was up 0.7 per cent in the September 2019 quarter.

This follows a revised quarterly growth rate of 0.1 per cent in the June 2019 quarter.

GDP growth increased by 2.3 per cent in the September quarter, compared with the same quarter of the previous year.