Commodity prices have continued to rise, business confidence has recovered, and the labour and housing markets have shown signs of recovery. However, the negative repercussions of the Christchurch earthquake in February continue to weigh the general economy down – a factor that could restrict economic growth throughout the middle of 2011.

Given soft growth outcomes, and consumers that remain hesitant to spend, the Reserve Bank will feel little pressure to increase the official cash rate before the end of the year.

Read the full report, including information on house sales, house prices, dwelling consents, non-residential building, interest rates and net migration.