Alarm Bells Ringing Over US Economic Performance

Higher unemployment and lower job creation figures in the US have increased concerns about a possible recession in the world's largest economy. This is potentially bad for New Zealand exporters - the US is our second biggest market. An interest rate cut in the US to try and stave off recession would also be bad here as it might increase the value of the New Zealand dollar as international investors chase a widening interest rate differential between US interest rates and those in New Zealand. This article is a good summary of the situation in the US.