The growth outlook has been revised down slightly in the latest NZIER Consensus Forecasts, relative to the previous quarter.
The key drivers of the downward revision were lower expectations of business investment and exports, which were partly offset by slightly stronger expectations of household spending. The uncertain global growth outlook has dampened expectations for export growth. Meanwhile, business confidence has fallen in the face of persistently weak profitability, with businesses becoming more cautious about investment. However, consumer confidence remains positive, and households continue to feel buoyant about making big-ticket purchases. This suggests household spending growth should remain robust over the coming years.