Skip to content

Lift in traffic volumes ‘a story of resilience’

Lift in traffic volumes ‘a story of resilience’

Navigation for News Categories

Road freight movements have rebounded to their best levels in a year, suggesting the economy’s recovering from the worst of the lockdowns.

no caption

Photo: 123rf.com

ANZ Bank’s monthly Truckometer shows heavy traffic movements, a real-time measure of current activity, lifted 4.1 percent in September.

The volume of light traffic, which points six months ahead, rose by about 12 percent.

ANZ said in its report the data showed a “story of resilience”.

“We’re certainly seeing quite a lot of volatility in the traffic and that is of course related to the fact we went into lockdown again in August, albeit in a regionalised and in a less severe way then in March and April, but it was definitely enough to be seen in the traffic volumes,” ANZ chief economist Sharon Zollner said.

“What is interesting is that the traffic volumes, both heavy and light traffic, are up versus a year ago, so I think that’s more a sign of catch up activity than suggesting the economy is running hotter than it was a year ago.”

Zollner expected to see the “overshoot” dissipate over the coming months.

“We estimate the closed border knocks out about 5 percent of GDP, though the impact on traffic is even more difficult to estimate.”

She said the summer months will provide a real test for the economy, as wage subsidies start to wind down, the first wave of the mortgage deferral schemes comes to an end and the loss of international tourism at what is usually the peak season.

“But the ANZ Truckometer is consistent with the preliminary ANZ Business Outlook for October released yesterday, indicating that the economy for now at least has regained momentum, albeit in a slightly stop-start way due to Covid briefly re-emerging.”

Get the RNZ app

for ad-free news and current affairs
Download from Apple App Store
Download from Google Play Store

XL subscribe to our newsletter banner

Get the latest news and advice on COVID-19, direct from the experts in your inbox. Join hundreds of thousands who trust experts by subscribing to our newsletter.

Send your news and stories to us news@climaxradio.co.uk or newstories@climaxnewsroom.com and WhatsApp: +447747873668.

Before you go...

Democratic norms are being stress-tested all over the world, and the past few years have thrown up all kinds of questions we didn't know needed clarifying – how long is too long for a parliamentary prorogation? How far should politicians be allowed to intervene in court cases? To monitor these issues as closely as we have in the past we need your support, so please consider donating to The Climax News Room.

Privacy Policy Designed using Unos Premium. Powered by WordPress.

Live Updates COVID-19 CASES