5. Question No. 5—FinanceANNA LORCK (Labour—Tukituki) to the Minister of FinanceQuestion No. 5—Finance5. ANNA LORCK (Labour—Tukituki) to the Minister of Finance: What recent reports has he seen on the New Zealand economy?Hon GRANT ROBERTSON (Minister of Finance): The economy performed strongly in the September 2022 quarter where Stats New Zealand reported that it rose 2 percent in the three months to September following a 1.9 percent increase in the previous June quarter. On an annual basis the economy was 6.4 percent larger than a year ago and nearly 8 percent bigger than before the pandemic ahead of most countries that we compare ourselves with. Most economists are forecasting however that the economy is unlikely to sustain this momentum in the December quarter when the GDP figures are released tomorrow. Those economists are forecasting a modest decline in GDP for the last three months of 2022 following those two quarters of extremely strong growth. Westpac's economists say that they do not necessarily see this as marking the start of a recession as data has been choppy since COVID.Anna Lorck: What other reports has he seen on the economy?Hon GRANT ROBERTSON: The strength of the jobs market is continuing to support the New Zealand economy. Statistics New Zealand reported that the unemployment rate remained at a near-record low of 3.4 percent in the December quarter while the number of people in jobs hit a record high of 2.86 million. The average hourly wage rose 7.2 percent to $38.19 matching the current rate of inflation. We know that many Kiwi families are doing it tough in the face of cost of living pressures but they do so while in record numbers in paid work and with wages matching inflation. This will help ease some of the pressure they are under along with other actions the Government is taking. Anna Lorck: What reports has he seen on the demand for labour and its impact on the economy?Hon GRANT ROBERTSON: The SEEK New Zealand employment report rose 0.9 percent in February following a 2.2 percent gain in the month before in January. On an annual basis job ads rose at a slower pace of 7.3 percent. Looking at the regions Auckland's job ads were flat in February following the flooding event in late January while also obviously in Hawke's Bay there was a 15 percent drop in the aftermath of Cyclone Gabrielle. Overall the employment market is strong but there are areas in New Zealand who are doing it tough.Anna Lorck: What reports has he seen on the manufacturing sector and its impact on the economy?Hon GRANT ROBERTSON: Activity in the manufacturing sector expanded in February. The BNZ - BusinessNZ Performance of Manufacturing Index or PMI rose to 52 last month to be slightly below the long-term average of 53. New orders and employment rose while production eased slightly. In the wake of the floods in January activity in the northern region including Auckland was flat and also obviously in the Hawke's Bay and Gisborne area it was weak following Cyclone Gabrielle. Overall the manufacturing sector continues to support the New Zealand economy. Anna Lorck: How does manufacturing activity in New Zealand compare internationally? Hon GRANT ROBERTSON: Globally the PMI stood at the break-even mark of 50 with the US eurozone UK and Japan all contracting while New Zealand was joined in expansion by Australia and China. New Zealand does find itself well placed to deal with a challenging global environment and the recent extreme weather events. We have a solid balance sheet near record-low unemployment growing exports rising tourist numbers and an increasing number of overseas workers arriving to fill vacancies. We will continue to take a balanced approach that gives us flexibility and choices to support New Zealanders in a challenging economic environment.