NZ Economic Monthly: February 2026

- The economic recovery is broadening out, with growth expanding from agriculture into manufacturing and household sectors. - Inflation temporarily moved above target but is expected to return to the 1–3% band by March 2026 as spare capacity keeps core inflation contained. - Trade trends are supportive of growth, with dairy prices rising across recent GDT auctions, continued strength in animal proteins and ongoing recovery in services exports. - The labour market shows early signs of improvement: unemployment rose to 5.4% mainly due to higher participation, while employment is now growing and unemployment is expected to decline through 2026. - Financial conditions have tightened modestly but remain accommodative overall.