Already a subscriber?A depressed New Zealand economy is hurting ASX-listed companies, with construction materials supplier Fletcher Building, job classifieds group Seek and retailer Kathmandu revealing results this earning season affected by the downturn.
“I’m not sure if it is a function of rates in New Zealand being too high for too long or because they increased their rates before and more deliberately than Australia,” Mr Mawhinney said. “Things are really depressed at the moment but there is probably some light at the end of this tunnel. From these levels, things may well improve and the RBNZ has begun its rates easing cycle. The future is unlikely to be as bleak as it looks from the eye of this storm,” he said.
On Friday, poultry producer Inghams also warned about cost-of-living pressures hurting consumers. The company said it benefited from volume growth in New Zealand as customers switched to cheaper options at home, while volumes to quick service restaurant channels declined.