Truckometer – another indicator of the NZ Economy

The ANZ Truckometer is a set of two economic indicators derived using traffic volume data from around the country. Traffic flows are a real-time and real-world proxy for economic activity –particularly for the New Zealand economy, where a large proportion of freight is moved by road. It represents an extremely timely barometer of economic momentum. The ANZ Heavy Traffic Index shows a strong contemporaneous relationship to GDP, while the ANZ Light Traffic Index has a six month lead on activity as measured by GDP. Notice the change around 2007/08 with the GFC. The index below does show some encouraging signs after the lockdown with heavy traffic bouncing back as restocking takes place. Although as stated by Sharon Zollner of ANZ it is early days.

Source: ANZ Truckometer – 11th August 2020

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