Heavy traffic movements throughout the country – viewed as a real-time gauge of economic activity – declined 1.7% in May, compared to a 2.4% rise the month before, according to the ANZ Bank's monthly Truckometer index.

According to ANZ chief economist Sharon Zollner, although labour shortages within the trucking industry are extreme, the heavy traffic index remained on an upward trajectory.

In addition, the light traffic index, indicating economic activity over the coming six months, increased by just 0.1% in May, reports RNZ.

"Light traffic is holding up remarkably well in light of near record-high petrol prices and consumers' stated reluctance to spend,” Zollner stated.

The traffic data from April and May signals New Zealand’s GDP growth will likely be positive in Q2, the economist added.

"Overall, the data continues to show the economy settling back into its rhythm as the disruption from Omicron gradually wanes.

"That's not to say that we are back in a world where we can estimate demand and assume the supply will be there to meet it,” she said.

Zollner added that labour shortages were being experienced across the country.

The most recent report from the OECD (Organisation for Economic Co-operation and Development) indicates the economic outlook for New Zealand is strong, predicting 3% growth for 2022 and 2% in 2023.

"Economic growth will slow but remain solid as pent-up demand during the surge in Covid-19 infections in early 2022 is unleashed and gradual reopening of the border allows the tourism sector to recover," the OECD report stated.

"Inflation will decline in 2023 but remain high, as firms pass on global commodity price inflation and workers demand higher wages."

The report added: "In order to avoid fuelling inflationary pressure in the near term, any additional fiscal support against higher living costs should be more targeted. The government should also consider deferring some of its infrastructure investment."