Economic indicators out this week

Press, 12 June 1989, Page 2

Economic indicators out this week

By

PATTRICK SMELLIE

in Wellington Three key indicators of the health of the economy are scheduled for release this week. These are the April balance of payments statistics, terms of trade figures for the three months to March, and the March quarter Producers Price Index. The Government also expects to hear by the end of the week

whether the sale of the Motunui Synfuels plant and Maui gas contracts to Petrocorp will be allowed to go ahead. A decision on this is due by Friday. The latest economic forecasts from the BERL consulting group will be released this evening. The first of the statistical releases is the April balance of payments, due tomorrow.

This is likely to continue the deteriorating trend of recent months in spite of record exports in the year to April, imports are rising and the weaker New Zealand dollar has been increasing the cost of servicing overseas debt. The terms of trade figures, a basic measure of our world competitiveness, are due on Thursday. Strong export prices for traditional products pushed the

terms of trade to their highest level since 1979, to stand at 88, at the end of last year. Some levelling off in the international commodity price boom in recent months means any further improvement in this measure is unlikely. But it is also unlikely to fall much. Delayed from last week is the March quarter PPI, which will be watched with interest amid growing signs of new inflationary pressure in the economy.