Truckometer data shows economy still in low gear

The economy is still in low gear as it approaches the new year.

ANZ's Truckometer shows heavy traffic movements - an indicator of current activity - fell 2.5 percent in November on the month before but was up 1.2 percent on last year.

The light traffic index - a measure of consumer behaviour looking six months ahead - was unchanged and is a fraction up on last year.

Senior economist Miles Workman said it had been a hard year for households and businesses.

"The fact that the light traffic data hasn't really gone anywhere in recent months suggests that there is still quite a few households that are in belt tightening mode and they're choosing not to spend much money on trips and long weekends.

"The heavy traffic index did fall 2.5 percent in the month of November, looking through the volatility though, it's really similar I think to what we've been seeing lately in the GDP data, which is that things have been relatively flat over the past year or so and there isn't a lot of growth in this economy here and now."

Workman said this year had been about controlling inflation.

"Both global inflation and domestic inflation have turned a corner in 2024. The Reserve Bank has become confident that they've done enough to keep inflation contained around its target mid point of 2 percent.

"2024 is the year the economy got hit with high interest rates which made things difficult for households and firms. But 2025 is shaping up to be the year we can begin to take those pressures off and hopefully we would see some green shoots emerging and actually grow in fruition."

He said as long as a big, external shock did not hit the economy, next year was looking up.