For the Reserve Bank, this is likely to significantly dampen any thoughts of rate increases going forward. With higher oil prices and a weakening housing market, employment growth should be much more moderate ahead.

That was much worse than expected, and the underlying numbers look weak across the board.

The moderation is certainly very slow in arriving, even allowing for the usual lag in data, and these sectors' problems are clearly being mitigated by a pick-up in business investment and commodity exports.

The residential housing market is well off its peak now. The Reserve Bank remains on hold for now with domestic demand moderating.

With the import side holding up more strongly than exports for now, the Reserve Bank is unlikely to respond with lower interest rates in the near term.

Since the Reserve Bank of Australia raised rates in March, the housing market has just been going sideways. Rates are on hold until the third quarter of this year.

They are concerned about inflation first and foremost but they already know that was going to happen because of petrol.

This report backs the Reserve Bank remaining on hold ahead. Weakness in retail and transport is being mitigated by a pickup in mining and construction.

This kind of figure is bound to generate negative headlines for New Zealand. Higher oil prices also suggest the deficit could widen further.