The Light Traffic Index (LTI) rose 0.2% in October but is down 1.7% compared to a year ago. The Heavy Traffic Index (HTI) fell 0.4% in the month, and is up 0.5% y/y. The data are seasonally adjusted.

Light traffic (motorbikes, cars and vans) is generally a good indicator of the state of demand, as opposed to production. It typically provides up to a six-month lead on momentum in the economy, with variation reflecting discretionary spending on outings, movement of couriers and tradespeople etc. Light traffic has been noticeably lower in recent months, likely reflecting people choosing to drive less due to higher fuel prices. 

In October, the index rose 0.2%, but it is down 1.7% y/y. Resilient business and consumer confidence suggests GDP will not follow traffic lower, though spending power diverted to fuel is undoubtedly slowing the recovery.

Heavy traffic data (mostly trucks, but also buses) tends to provide a steer on production GDP in real time, as it captures both goods production and freight associated with both wholesale and retail trade, as well as exports. The Heavy Traffic Index fell 0.4% in October, but that was off a lift in September.

Absolutely. This is a particularly interesting development for New Zealand's commercial vehicle and fleet sectors, as it addresses one of the less glamorous but very real barriers to electric truck adoption: battery weight, axle loads and the rules governing what can legally travel on our roads.