Job advertisements in New Zealand have experienced a decline for the second consecutive month, according to data from employment website Seek NZ. In June, job ads fell by 3% compared to May and were also 3% lower than figures from the same month last year. This reduction in job listings coincides with indications that the country’s economic recovery is stalling as the year progresses.

Rob Clark, country manager for Seek, noted that job ad levels have remained largely flat over the past year. “While the volume remains below pre-COVID levels, there are pockets of growth, which should be cause for some optimism,” he stated.

Regional Variations in Job Advertisements

The decline in job ads was not uniform across the country. Regions such as Gisborne, Marlborough, and Southland were the only areas to report month-on-month growth in June. In contrast, major regions like Auckland and Canterbury experienced a 2% drop, while Wellington saw a more significant decrease of 4%. Otago remained unchanged, and Waikato reported a decline of 4% as well.

In terms of sector performance, the only industry to witness an increase in job volumes was the Information & Communication Technology sector, which saw heightened demand for positions such as ICT managers and networks and systems administrators. Clark highlighted that, despite the overall monthly dip, there has been a notable surge in demand within the government and defense sectors, which has jumped by 51% year-on-year. He expressed optimism about seeing a growing number of industries returning to annual growth, particularly within the professional and consumer services sectors.

Economic Context and Future Outlook

The recent trends in job advertising are reflective of broader economic conditions in New Zealand. Various economic datasets suggest that the country is experiencing a slowdown in its recovery phase. Despite the challenges, Clark’s comments about pockets of growth provide a glimmer of hope that certain sectors and regions may still be poised for expansion.

As New Zealand navigates this complex economic landscape, the performance of job ads in the coming months will be closely monitored by analysts and job seekers alike. The resilience shown by certain industries indicates that while challenges exist, opportunities for growth remain, potentially paving the way for a more robust employment market in the future.

The economic landscape in Argentina is experiencing a striking dichotomy as the housing market flourishes while retail and dining sectors face significant challenges. Within just three months of the midterm elections, voters are grappling with contrasting realities that could impact their perception of President Javier Milei’s administration and its economic policies.

Housing has become a bright spot in the economy, with an increased demand leading to a surge in real estate activity. Major developers report that new homes are being constructed at an unprecedented rate, reflecting a renewed confidence among buyers. In addition, the automotive market is thriving, with cars being sold rapidly, as consumers take advantage of favorable financing conditions. Airlines are responding to this trend by increasing the number of flights to Buenos Aires, catering to a growing travel demand.

In stark contrast, many shops and restaurants are struggling to attract customers. The hospitality sector is facing an uphill battle, with hotels operating at only half-capacity. Vacancies in retail spaces are becoming more common, suggesting that the economic recovery is not benefiting all sectors equally. The disparity highlights a troubling trend in Argentina, where the wealth generated from certain industries is not reaching the broader population.

As the country approaches the midterm elections scheduled for October 2023, the electorate’s views on the economy will play a crucial role in determining the success of Milei’s party. The president’s pro-market policies and austerity measures are under scrutiny, as many citizens are left to question whether the economic recovery is inclusive or merely a façade for the wealthy.

Income inequality has long been a characteristic of Argentina’s economic landscape. While the country has made strides in reducing inflation and poverty rates, the benefits are not universally experienced. A stronger currency, a key achievement of Milei’s administration, has facilitated lower inflation but has also contributed to the uneven recovery. This situation raises critical questions about the sustainability of Milei’s approach, particularly as many citizens continue to face economic hardships.

The challenges confronting the retail and hospitality sectors are compounded by the effects of a protectionist economy that has not been accustomed to foreign competition. As Milei implements measures to open up the market, the long-term implications for local businesses remain uncertain. The current economic climate thus presents a complex puzzle for voters, who are weighing the potential benefits of Milei’s policies against the stark realities of their daily lives.

As election day approaches, it is evident that the narrative surrounding Argentina’s economy is multifaceted. The successes in housing and automotive sales stand in sharp contrast to the struggles faced by shops and restaurants. Only time will reveal how these factors will influence the electorate’s decisions and the future direction of Argentina’s economic policies.

Oil prices fell on Friday, reaching a three-week low as concerns over economic developments in the United States and China weighed heavily on the market. Traders reacted to disappointing economic indicators and increasing supply, leading to a decline in both Brent crude and West Texas Intermediate (WTI) crude prices.

Brent crude futures dropped by 74 cents, or 1.1%, settling at $68.44 per barrel. Similarly, WTI crude futures fell by 87 cents, or 1.3%, finishing at $65.16. This marks a weekly decrease of approximately 1% for Brent and about 3% for WTI, as reported by the Al-Attiyah Foundation in its Weekly Energy Market Review.

Economic Indicators Raise Alarm

Recent economic data indicates troubling trends. In the United States, new orders for manufactured capital goods unexpectedly declined in June, suggesting a slowdown in business investment and equipment spending in the second quarter. While shipments of these products saw a moderate increase, the overall outlook remains cautious.

Simultaneously, fiscal revenue in China, the world’s second-largest economy, decreased by 0.3% in the first half of the year compared to the previous year, maintaining the declining trend observed from January to May. Such figures have contributed to a bearish sentiment in global oil markets.

Supply Factors and Future Expectations

On the supply side, the U.S. government is reportedly preparing to permit certain partners of Venezuela’s state-run PDVSA, including major oil company Chevron, to operate under specific conditions within the country. This could potentially increase Venezuelan oil exports by just over 200,000 barrels per day, a move welcomed by U.S. refiners that could alleviate tightness in the heavier crude market.

In a related development, energy services firm Baker Hughes announced that U.S. energy firms cut the number of operational oil and natural gas rigs for the twelfth time in thirteen weeks. This reduction may signal ongoing concerns over future production levels amidst fluctuating demand.

Asian spot liquefied natural gas (LNG) prices also faced downward pressure, dropping for a second consecutive week to a ten-week low. The average LNG price for September delivery into northeast Asia was reported at $11.90 per million British thermal units (mmBtu), down from $12.30 per mmBtu the previous week. Limited demand in the region, particularly during a significant heatwave, has resulted in reduced spot market activity.

As new projects increase supply, expectations of further growth are influencing market dynamics. The commencement of production at the LNG Canada project is anticipated to boost Canadian supply, while the Venture Global Plaquemines export facility has achieved record output following the launch of its second phase. Additionally, the Greater Tortue Ahmeyim project operating offshore Mauritania and Senegal has been reported to function smoothly after loading its first cargo.

In Europe, the futures price at the Dutch TTF hub fell to $11.19 per mmBtu. The recent decline in spot demand for LNG in Asia has enabled European buyers to negotiate at wider discounts to secure cargoes, further impacting the pricing landscape.

As the market continues to respond to these multifaceted factors, traders remain vigilant for any shifts in economic indicators or supply chain developments that could influence future oil prices.

Oil prices declined on Friday, reaching a three-week low due to concerns about economic conditions in the United States and China, alongside indications of increasing supply. Traders reacted to negative economic reports, with Brent crude futures falling by 74 cents, or 1.1%, to settle at $68.44. Meanwhile, US West Texas Intermediate (WTI) crude dropped 87 cents, or 1.3%, closing at $65.16, according to the Al-Attiyah Foundation in its Weekly Energy Market Review.

Over the course of the week, Brent crude experienced a decline of approximately 1%, while WTI saw a greater drop of around 3%. These decreases were partly influenced by disappointing economic data from the US, where new orders for manufactured capital goods unexpectedly fell in June. Although shipments increased moderately, this suggested a significant slowdown in business spending on equipment during the second quarter.

Potential Supply Boost from Venezuela

In a development that could impact oil exports, the US is reportedly preparing to allow partners of Venezuela’s state-run PDVSA, including US oil giant Chevron, to operate under certain limitations in the sanctioned nation. This move could potentially increase Venezuelan oil exports by just over 200,000 barrels per day (bpd), a welcome relief for US refiners grappling with tightness in the heavier crude market.

On the supply side, US energy firms have cut the number of operational oil and natural gas rigs for the twelfth time in thirteen weeks, according to energy services firm Baker Hughes. This trend underscores the challenges within the US energy landscape.

In China, which ranks as the world’s second-largest economy, fiscal revenue decreased by 0.3% in the first half of the year compared to the previous year, maintaining the same rate of decline observed from January to May. Such fiscal challenges contribute to concerns about global oil demand.

Natural Gas Market Dynamics

The natural gas market also exhibited downward trends, with Asian spot liquefied natural gas (LNG) prices falling for a second consecutive week, reaching a ten-week low. The average LNG price for September delivery into northeast Asia was estimated at $11.90 per million British thermal units (mmBtu), down from $12.30 per mmBtu the previous week.

Despite ongoing heatwaves, demand for spot LNG in Northeast Asia has remained subdued, as much of the increased cooling needs have been met by more affordable coal-fired power generation. Additionally, the rise in renewable energy generation has reduced reliance on coal, enabling a more flexible energy supply to meet peak demand.

Looking ahead, the prospect of increased supply is affecting market prices, particularly with expectations of rising Canadian output following the commencement of production at the LNG Canada project. Venture Global’s Plaquemines export facility has also reached record output after beginning production from its second phase. Furthermore, the Greater Tortue Ahmeyim project, located offshore Mauritania and Senegal, has been operating smoothly since it loaded its first cargo.

In Europe, futures prices at the Dutch TTF hub have dropped to $11.19 per mmBtu. The recent decrease in spot LNG demand in Asia has allowed European buyers to bid at wider discounts compared to the TTF to secure necessary cargoes, further influencing the global energy market.