I don’t think we appreciate that for parts of the economy, we have serious and rising pain…
‘Economy hits a brick wall’ as services sector continues to decline – economist
The services sector continues to decline with all indicators consistent with an economy in recession.
BusinessNZ Performance of Services Index (PSI) for May was down 4.1 points to 44, which was well below the long-term average of 53.
Anything below 50 points indicated contraction.
“There are clear warnings that the New Zealand economy has hit a brick wall in Q2 [second quarter], and this is despite the substantial revenue growth flowing from the agriculture sector,” BNZ senior economist Doug Steel said.
“If there was ever an argument for the provision of further stimulus from the central bank, then this is it.”
BusinessNZ’s chief executive Katherine Rich said the services sector had been contracting for several months, apart from a small expansion in January.
All key indicators for May were in contraction with negative comments from two-thirds of respondents.
“Many businesses noted reduced demand and falling revenues due to rising costs, economic uncertainty and low consumer confidence she said.
“Comments noted customers spending less, delaying decisions, and responding cautiously to inflation interest rates, and broader market instability.”
Steel said the fall in the PSI followed the sharp decline in the Performance of Manufacturing Index (PMI), which fell to 47.5 in May from 53.3 in April.
“Together, they are consistent with the economy returning to recession. We’re a long way from forecasting this, but the data are a reminder of just how vulnerable the economy currently is.”
He said the combined services and manufacturing data looked nothing short of disastrous.
…nothing short of disastrous.
Combine this with the exodus fleeing this Government’s failed policies to Australia and we have a problem.
Look at the Numbers…
…things are not getting better…
Kiwibank economists: More Official Cash Rate cuts needed amid slow recovery, global risks
Kiwibank economists are calling for more cuts to the Official Cash Rate as the economy continues to crawl out of a “deep, deep hole”, and as trade tensions and slowing demand offshore hit “just as confidence begins to lift”.
The truth is, that thanks to National and their slash and burn policy, we are in worse shape than when Labour were spending to protect us from Covid.
The recently announced $13.5million for tourism was just desperate mad dash advertising using false 100% Pure greenwashing because the exodus of skilled workers to Australia (thanks to National killing off all public housing and infrastructure work pipelines) is tanking the economy far worse than we should and this Government will throw money at any get rich quick scheme.
Labour is good for capitalism.
National is good for the capitalists.
NZ’s economy is not underperforming by accident
The truth is NZ is two massive sparsely populated Islands and because of the lack of population density, the dynamics of competition that make free market capitalism work well in some places don’t work here!
The State has always had to be the foundational stone in anything and everything we do.
They are the base 30% when we require 40%.
Nicola Willis is a wide eyed NZ Initiative Free Market Acolyte, she believes as a matter of faith that when you cut out the State, the market steps in and does it cheaper. People complain these terrible budget cuts offer no actual economic plan, what they miss is that Willis is such a free market devotee, the steep cut backs ARE the economic plan!
For a fourth month in a row the Business Confidence has dropped because they are realising that National isn’t ruling for the economy, they are ruling for their donors interests and those are 2 very different things.
Increasingly having independent opinion in a mainstream media environment which mostly echo one another has become more important than ever, so if you value having an independent voice – please donate here.
Oh but we are ‘doing what is necessary’. Complete and utter crap from a bunch business think-tank types who it appears think and then something tanks.
The exodus is fleeing both this Government and the next, which will be you guys, following British Labour. How is 40%+ of the economy and the highest taxes since WWII working for them? Same as here. They’re in a doom loop and so is NZ.
“The Economy is melting down because of this Government, not despite it.”
Well, yes. But it goes further than that though, doesn’t it.
Our economy’s melting down because the economy’s being deliberately tanked by buyers lining up.
We hopeful voters don’t have a choice between Left or Right because we have no Left or Right. We instead have cross-party neoliberalism.
Buy this, read it, lend it. Come to know your enemy and it’s only $30.00
The Invisible Doctrine
The Secret History of Neoliberalism (& How It Came To Control Your Life)
Peter Hutchison George Monbiot
https://www.penguin.co.nz/books/the-invisible-doctrine-9781802062694
“…this Government is more focused on saving dollars than saving lives!
That’s the reality! ”
Well, yes. About .01% of reality.
Look. You hate farmers. I get that that. I’m not overly fond of 70% of them myself and I’m a farmer, amongst other enterprises. Like sitting, standing, looking over there then back to over here again.
And coming here of course to vent my acidic spleen.
All AO/NZ governments were and are focused on ‘ saving’ money because we’ve always had hangers on waiting with their hands out and their pockets open for free Kiwi farmer money. That, in a nutshell is AO/NZ’s economy. Farmers make stuff then they must all but give it away then the middle-creeps crank up the value just because they can then go and live in Remuera next door to jonky.
Farmers, just like sheep, have no top teeth for confrontation. They can only shit themselves while being predated then die early. It is a plan, I’ll give you that but not that flash a plan.
I’ve seen beautiful, clean Merino/Romney wool being peeled off our own sheep to be bailed then trucked to the buyers who’d give us a a couple of bucks a kg then on-sold to the process to come out as 800gram $2000.00 suits and 200gram $500 jerseys.
Now, I know you hate me and you’ll hate me bringing this up and you definitely hate farmers, that’s kind of obvious but you need to move on past that and be honest with your own assumptions.
The zenith of all of our economy’s ills and misfortunes don’t have their beginnings in Auckland or Christchurch etc. Our towns and cities are merely washing machines to clean up the money swindled from farmers and their endeavours to then have that money move along through the corrupt digestive tracts of our money lending scams and property-value grifts and now through the australian owned banks who are here and now literally stealing our money. Farmer money.
But now, dear boy, the rat’s returned to the cheese once too often to find the cupboard bare with all exits blocked. In short, towns people, you’re fucked because you fucked yourselves into a terrible fuck corner where you cringe together squeaking and scuffling and whining and wheedling because here comes the debt collectors. You rich, self serving elitist urban arse holes have gorged yourselves on cheap exported farm-produce money against which you’ve leveraged a false economy and now? Drive into that green place called the countryside and you will see fuck all by way of produce to grift.
Ask Adrian Orr? He would know . He jumped the sinking dung barge before he went down with it.
The end didn’t begin with roger douglas, the Criminal Prime and the advocate of neo-liberalism but he certainly gave it a shot of nitrous oxide. Then Boom!
Jim Bolger: November 2, 1990 – December 8, 1997. Jenny Shipley: December 8, 1997 – December 10, 1999
Helen Clark: December 10, 1999 – November 19, 2008. John Key: November 19, 2008 – December 12, 2016
Jacinda Ardern: October 26, 2017 – January 25, 2023. Chris Hipkins: January 25, 2023 – November 27, 2023
and now, Christopher Luxon: November 27, 2023 – Present. All those giant brains and glowing testicles on monumental salaries and yet we’re all still fucked.
Our primary industry’s exhausted, spent, fearful and fucked. but yet we have, as was reported here, 14 multi-billionaires, 3118 multi-millionaires each with a net minimum of $50 million and four now australian owned banks; anz, bnz, asb and westpac earning $180.00 a second net 24/7/365. Australia? Mate! It’s our only real primary industry competitor thus WTF?
Tell those figures to the people who now live in fear of poverty on a country that only does the best agricultural produce in the world which also happens to have a foreign market edge in that we’re in the southern hemisphere giving us farmers a head start in terms of earnings. AND… There’s only 5.3 mil of us. Do you get it yet?
We farmers are deliberately hobbled. We’re hated and despised because of customised lies and treachery. Ask RNZ about that? We’re only mentioned when cows shit in creeks or we’re caught fucking sheep. I mean who wouldn’t? They’re gorgeous! We’re really a keen and handsome lot and are nice. We’re nice people. But you townies are not that fucking nice. At all. In fact most of you are arse holes. You’re greedy and demanding then when you get what you want it’s never enough.
$2.5 million dollar house? Not enough $200 K super cars? Not enough. Where does that kind of false economy money come from? Do you ever think of that? Do you think the money might be filaments of australian owned bankster spiders webs.
Urban people think “Farmers? Whine-whine-whine. Countryside? Whine-whine-whine. A bloke in a muddy 4×4 who says Yeah/Nah gidday a lot? Whine-whine-whine. ” But some little cap wearing baggy-arse with a nob-end tattoo of a fish hook or the name of the grunge band playing while they fucked some chick or dude up against a shitter wall who can now only sniff back the snot of the previous night’s Meth smoking and drives an HP financed turbo charged Dinky Toy is a fucking hero and the more they lean while stinking and mumbling the better. Yes, that’s right. All the better for your Dark-Shadows masters to use against us when the time’s right. And that time’s running out. We’re not just politely broke but will get over it. We’re fucked as I warned you, you would be and you’ve just been warned again. The first thing to do on the road back to redemption is to come to know the enemy. And that enemy, or at least one of them, is yourselves. You’re choosing ignorance over enlightenment. You’re choosing to believe political liars over in-plain-sight truths. You’re up to your necks in scary shit and yet you have no idea you are.
I’ve just watched an AO/NZ Cheetah drinking at a water hole oblivious to the foreign owned bankster crocodile just under there… waiting. That, was a metaphor btw dumbasses.
https://www.youtube.com/watch?v=_F2OuOobBV8
We are melting away as whipped cream always does. We are milk-sops! Don’t know how to stand up to tenacious, ferocious incomers, finishing like the huia bird? . Is there help for our version of the human species, or indeed, any version – fine minds potentially, but open to competitive having disease, more money or other tradeable currency? Not adult behaviour as we’ve been led to understand it, but which way are we really being led?
Squeaky clean posted yesterday a real good web page to go to that proved beyond doubt that NZ is screwed .
But wait there’s more….
https://www.stuff.co.nz/politics/360729230/jacinda-ardern-remains-most-popular-politician-luxon-slumps-new-poll