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Freight volumes provide one of the clearest real-time signals of activity in the New Zealand economy.

Freight volumes provide one of the clearest real-time signals of activity in the New Zealand economy.

Falling interest rates and limited growth in labour costs continued to keep overall transport costs in check in the September quarter.

The mix of light passenger vehicles that make up New Zealand’s fleet has been changing in many ways over the past two decades.

Most costs for transport operators declined in the June quarter, with only unchanged road user charges and a modest increase in labour costs bucking the falls.

Last week the government announced the next steps for replacing petrol tax with electronic road user charges (RUCs). These changes have been signalled in the past, including as part of the governments’ 2025Q2 action plan in April.

Tractors are often seen as a key piece of farm equipment, and long have been thought of as a good economic indicator of farm spending and investment. Despite the continued focus on tractors in New Zealand, and how they can act as a bellwether for the primary sector, in reality, things are shifting. Infometrics analysis shows that New Zealand passed peak tractor back in 2022, and they are likely become a less important indicator of primary sector activity as the sector shifts to different and more varied technology.

Fuel is critically important to any economy, given it literally powers and enables the movement of goods and people, supports production, and underpins supply chains. A stable, secure, and affordable fuel supply helps maintain economic stability, and so knowing where fuel is sourced from better informs security of supply and the importance of strong trading relationships.

As has been the case across other areas of the economy, the transport industry showed some re-emergence of cost pressures in the March 2025 quarter. Repairs and maintenance costs jumped 4.8% over the quarter to be 14% higher than a year ago, which was the fastest rate of increase since 2022.

Fuel is critical to the New Zealand economy, enabling goods and people to move around. With fuel needing to be imported into New Zealand from overseas, the source of our fuel, and the wider refining supply chain, are important to consider, as is the local pricing trends here at home.