4. Economy—ReportsTAMATI COFFEY (Labour—Waiariki) to the Minister of FinanceEconomy—Reports4. TAMATI COFFEY (Labour—Waiariki) to the Minister of Finance: What recent reports has he seen on the New Zealand economy?Hon GRANT ROBERTSON (Minister of Finance): More good news. Yesterday Statistics New Zealand released the terms-of-trade figures for the June 2018 quarter showing the strength of New Zealand's export prices over what we pay for imports. Strong readings for dairy and meat export prices led the way for a 0.6 percent quarterly rise in New Zealand's terms of trade to the second-highest quarterly reading and the highest ever annual terms-of-trade index since records began in 1926. Tamati Coffey: What else did Statistics New Zealand say about the terms of trade and the New Zealand economy?Hon GRANT ROBERTSON: Statistics New Zealands says that the terms of trade are an indicator of the state of the overall economy. The quarter's figures show that exports were strong off the back of a lift in dairy and meat prices. The terms-of-trade data also shows that capital goods import volumes are up 13 percent from the previous quarter and up nearly 25 percent from a year ago. These are goods like new machinery and industrial and transport equipment which businesses invest in to improve productivity and to drive growth. ASB economists said that the terms-of-trade data showed capital goods import volumes were resilient in the June quarter. On this side of the House we welcome the fact that real economic data shows that there is confidence among businesses to make productivity-enhancing investments. Tamati Coffey: How does this fit with other reports he's seen on the economy and business performance?Hon GRANT ROBERTSON: Over August we saw the earnings season on the New Zealand stock exchange. There were too many reports of companies reporting record revenue or profit results for me to list them all in the House today but I will note that the NZX 50 finished the month up about 4 percent from where it started with the stock exchange hitting a record high during August off the back of companies' earning reports. One other report which the House may find interesting is Treasury's monthly economic indicators released yesterday and I draw members' attention to the line that Overall our [Budget and Economic Fiscal Update] pick of 0.7% GDP growth in the June quarter is unchanged." In other words the sky is not falling in.Hon Amy Adams: Would the Minister agree that given the record terms of trade he's just espoused the fact that our economic growth is slowing and that export intentions are down can only be laid at the feet of this Government's economic mismanagement?Hon GRANT ROBERTSON: No because the member clearly wasn't listening to my very last comment which is Treasury picking that their GDP growth forecast for the June quarter is unchanged.David Seymour: Well what is the definition of "terms of trade"?Hon GRANT ROBERTSON: I think I helpfully said that at the beginning. It's the strength of New Zealand's export prices over what we pay for imports.David Seymour: So how does the New Zealand Government change those global prices?Hon GRANT ROBERTSON: By working with hard-working business people around New Zealand exports go up. It's about encouraging an economy that focuses on productivity supporting exporters through investment in transport infrastructure in skills and training and in research and development—the things that for nine years were ignored. But now exporters in New Zealand know they have a friend in the Government."