In Short:
– New Zealand’s economy grew by 1.1% in Q3, exceeding expectations after a mid-year contraction.
– Fourteen industries reported gains, with business services and manufacturing leading the growth at 2.2%.

New Zealand’s economy bounced back in the third quarter, growing by 1.1% and exceeding forecasts of 0.9%. This follows a revised 1.0% contraction in Q2, signaling a clear turnaround. According to Statistics New Zealand, 14 out of 16 industries reported growth, with business services and manufacturing leading the charge. Construction also picked up, rising by 1.7%, while exports were boosted by strong dairy and meat sales.

Retail spending showed robust gains, especially in categories sensitive to interest rates, including a 9.8% increase in electrical goods and a 7.2% jump in motor vehicle parts. Despite the positive quarter-on-quarter growth, the economy was still 0.5% lower than the same period last year, with telecommunications and education the only sectors experiencing declines.

Cautiously optimistic, Reserve Bank Governor Anna Breman noted that monetary policy will continue to depend on incoming data, as financial conditions have tightened beyond earlier projections. While positive GDP numbers support current low rates, the services sector—comprising two-thirds of GDP—has contracted for 21 consecutive months, suggesting the recovery may remain uneven.

In Short:
– The US economy grew by 4.3 percent in Q3 2025, exceeding forecasts and showing consumer resilience.
– Consumer spending rose by 3.5 percent, with increases in healthcare and recreational goods driving growth.

The US economy grew at a robust annual rate of 4.3% in Q3 2025, exceeding forecasts and marking its strongest quarterly expansion in two years. This growth comes despite lingering inflation concerns and political instability, showing that American consumers are continuing to spend and drive economic momentum.

Consumer spending, which accounts for roughly 70% of the economy, jumped 3.5% in the quarter, up from 2.5% previously. Much of this increase was fueled by healthcare expenditures, including hospital and outpatient services, along with purchases of recreational goods and vehicles. Exports surged 8.8%, while imports fell 4.7%, giving net economic activity a boost, and government spending bounced back 2.2% after a slight decline in Q2.

Remains optimistic

Despite the strong growth, inflation remains in focus. The personal consumption expenditures (PCE) price index rose 2.8%, up from 2.1%, with core PCE also climbing. Economists are closely watching the job market and tariff-related pressures. Meanwhile, the recent federal “Schumer shutdown” is expected to slow Q4 growth, potentially trimming GDP by 1 to 2 percentage points. Treasury Secretary Scott Bessent, however, remains optimistic that 2025 will still reach a 3% growth rate.

The Q3 numbers are also influencing expectations for the Federal Reserve. Analysts now see an 85% probability that interest rates will remain stable at the January 2026 meeting. Steady rates could provide a measure of certainty for investors, businesses, and consumers alike as they make decisions heading into 2026. Overall, the data paints a picture of a resilient US economy navigating both challenges and opportunities.

In Short:
– Global markets outperformed U.S. stocks in 2025, with international equities showing significant gains.
– Helen Jewell highlighted that international performance was key, aided by the U.S. dollar’s decline.

In 2025, U.S. investors watching AI stocks closely may have missed the bigger picture: international markets delivered their strongest performance against U.S. equities in over three decades. While the S&P 500 rose just 15%, foreign markets outperformed by more than 10 percentage points, led by South Korea, Peru, and other European nations.

Helen Jewell, BlackRock’s CIO, highlighted that the dollar’s 13% decline earlier in the year further amplified returns for Americans holding foreign assets. This marked the widest performance gap since 2009 and reminded investors of the value of diversification beyond domestic tech giants.

Continued Tech Rally

Nvidia, Tesla, and Palantir Technologies emerged as the most-viewed ticker pages on Yahoo Finance in 2025. Nvidia alone attracted 250 million page views, while Palantir soared an eye-popping 140% for the year. Despite this hype, the S&P 500 lagged behind global peers, showing that concentrated U.S. tech gains can mask broader market opportunities.