Whanganui’s economy continues to track steady to strong we have a number of events all worth attending this month check them out.
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New Zealand Economy
- Recent data indicates the economy experienced reasonable growth over the March quarter, although there are hints the pace of growth may ease in the current quarter
• Consumer price inflation remains low, while the housing market has picked up again
• International economic data were generally softer in April and the IMF downgraded its global growth forecasts.
Data released in the month indicate the economy experienced reasonable growth in the March quarter, although there were hints of a slower pace of growth in the current quarter. The number of businesses reporting increased trading activity in the March quarter was steady, but business confidence waned and fewer businesses expect activity to rise in the current quarter.
Indicators of retail spending growth remained solid although consumer confidence eased a little over the quarter, which might indicate a slower pace of household consumption growth in coming quarters. On the other hand, the resurgent housing market is likely to support consumer spending as household wealth rises. Net migration and tourist inflows continued to rise.
Read the full report here….
NZ House sales (Top)
House price records smashed across New Zealand as ‘Halo Effect’ grows .
- 9,527 dwellings sold in New Zealand in March 2016, up 30.7% on February and up 8.2% on March 2015. This is the highest number of sales in March since 2007.
- On a seasonally adjusted basis the number of dwellings sold rose by 5.5% compared to February
- National median price of $495,000, up $20,000 (+4.2%) on March 2015 and up 10.0% on February
- New record national median prices across New Zealand, New Zealand excluding Auckland, Auckland, Waikato/Bay of Plenty, Wellington, Nelson/Marlborough, Canterbury/Westland and Central Otago Lakes
- A 27% rise in the number of sales over $1 million between March 2016 and March 2015 — from 1,023 to 1,301
- 20,180 dwellings sold by auction in the 12 months to March 2016, representing 22.0% of all sales, an increase of 38% in the number sold by auction in the 12 months to March 2015
- Excluding the impact of the Auckland region, the national median price rose $35,000 to $385,000 compared to March 2015.
Read the Full report here…
NZ Retail Card Spend (Top)
The slower growth in retail card spend continued in March with the apparel and furniture and flooring sectors still under pressure. Fuel sales have remained in negative territory which continues to significantly contribute to the current lower inflation rates we have been experiencing.
Top Categories were takeaways, bars cafes and restaurants and accommodation which is a consistent trend.
NZ New Vehicle Sales (Top)
New Vehicle sales in New Zealand have continued to grow and in recent months the 12 month moving average growth has however continued to increased at a slower rate. In March 2015 a total of 7992 new cars were sold and in March 2016 the figure was once again up to 8 191 a small increase of 0.1%. The slowing growth since October has continued.
House sales have lead the way in the local economy with yet again good sales recorded once again the local indicators we monitor are still showing positive growth which is good for Whanganui.
Whanganui and Region House sales (Top)
Sales volumes rose 33% compared to March 2015, with sales rising 58% in Wanganui and 40% in Manawatu Country and 30% in Levin. Compared to February sales volumes rose 14%, with sales rising 33% in Levin, 12% in Feilding and 8% in Palmerston North. March was the highest number of monthly sales since May 2007.
The median price across the region rose $7,000 (+3%) compared to March 2015 with prices rising 26% in Manawatu Country and 15% in Wanganui, but falling across the rest of the region. Compared to February the median price fell $5,000 (-2%), with prices rising 9% in Levin, 7% in Wanganui and 3% in Feilding.
The number of days to sell improved by 15 days in March, from 44 days in February to 29 days in March. The number of days to sell improved by 16 days compared to March 2015. Over the past 10 years the average number of days to sell during March for the region has been 43 days.
REINZ Chief Executive, Colleen Milne noted that, “Sales volumes continue to rise across the region with a 33% lift in the number of sales compared to March 2015 and the biggest increase in Wanganui. Price increases remain modest in comparison with other North Island regional markets, however, the availability of properties for sale remains a major problem for the region. The number of days to sell, at 29 days, is the lowest for March in 11 years.”
Whanganui Card Spend(Top)
The top category this month was Appliances with Bars cafes and restaurants still showing continued growth.
Top 3 sectors were
- Hardware and Homeware
- Bars cafes and restaurants
The bottom three sectors were
- Apparel (flat and affected by changed market dynamics)
- Fuel (Lower pump prices- which in effect is a positive)
- Furniture and Flooring
Card spend comparison by region monthly growth over previous year
Source Market View
Card spend comparison by region month growth over previous year
Card spend comparison by region monthly growth over previous year dollar value of goods purchased March 2016.
Source Market View
Whanganui had better year on year electronic card sales than most of the TLA’s in the Manawatu Whanganui Region and still above the New Zealand Spend by 0.4%
Whanganui New Vehicle Sales (Top)
In January 2016 new vehicle sales were up on the previous year again with 62 new vehicles sold as opposed to 43 sold in the previous year pushing the moving average growth further up to 2.6% there are large fluctuations in sales from month to month but the overall trend is still in positive territory. The trend over the longer term still remains positive in spite of the erratic nature of sales in this sector.
Building Consents – Whanganui (Top)
In February 2016 there were 85 Building Consent applications. Based on a 12 month moving average we have again seen an improvement in number of consents passed with the value of consents indicating a stable trend in the region of $ 5million per month on average.
Source Wanganui District Council
In 12 months to February 2016 guest nights were up by 3.3 % which still indicates growth for the 12 month period but still a decline in growth. In February we still see signs of recovery with accommodation levels at similar levels to February 2015 which is a positive trend. The flood event of June 2015 would have negatively impacted on these figures as well.