COVID-19?has made it very challenging to monitor and measure the fluctuations in economies with differing complexities, and degree of effects across multiple factors.
To make the task of measuring economic activity easier, NZAC New Zealand Activity Index?- was unveiled on 30 June that summarises many monthly indicators of economic movement and is a broad measure of economic activity.
The index has been introduced to offer a grainier and more well-timed signal of activities in the New Zealand economy. NZAC has been created by staff at Stats New Zealand, Treasury and Reserve Bank of New Zealand.
NZAC?is a composite index that tracks the economic activity of New Zealand, through 8 monthly statistics including joblessness, consumer expenditure, traffic volumes, employment vacancies, electricity generation, economic outlook, and manufacturing prospects. The index would be revised approximately 14 days after the end of every month.
Graphic quote - Tim Ng, Chief Economic Advisor (Treasury) - “NZAC as a weighted average of monthly indicators, offers a broader measure than each individual indicator by itself.”
The index hits a decent equilibrium amid incorporating sufficient vital statistics to make sure decent quality index and preserve well-timed publication. The first edition of the index showed a 19% Y ar on Year drop in the?economic activity?in April 2020, while a strong rebound was observed in May on the back of a strong recovery in electronic card spending, and light and heavy traffic movements. However, May 2020 levels stayed 6.5% down compared to May 2019.
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