SNA total construction expenditure (Seasonally adjusted, percent of potential output)  Source: Statistics New Zealand, RBNZ estimates. Domestic demand growth has maintained its momentum despite the [52] percent decline in whole milk powder prices since February. Prices for meat and wool have provided some offset and farmers continue to show an extraordinary capacity to absorb shocks.
Private consumption and construction spending have remained strong, and interest rates remain low by historic standards. Two other factors will affect demand growth.