Increase in migrant numbers offers boost to economy

The net inflow of migrants gathered pace last month, promising a degree of support for a flagging economy.

After dwindling steadily to almost zero during the first half of the year, permanent and long-term migration has rebounded in the past three months, reaching a seasonally adjusted net gain of 1070 last month.

For the year ended September the net gain was 13,900, which is 2000 higher than the average over the past 20 years.

"It is early days but this recovery in net migration is encouraging in the sense that a few months back it was threatening to turn negative," Goldman Sachs economist Philip Borkin said.

"If recent trends are sustained it should help to allay concerns over pending labour shortages. It will also help to provide a floor under the housing market and domestic demand."

ASB economist Christina Leung said modest population growth would support a gradual recovery in housing construction and retail spending over the coming years.

The figures count people who say in their airport arrival or departure cards that they have lived overseas for the past year or intend to for the next 12 months.

Statistics NZ said the rebound was due to a recovery in arrivals, while departures remained steady at around 6100 a month.

Last month saw a net loss of 1500 people to Australia. Over the past year twice as many people left for Australia as came the other way for a net loss of 18,100 people.

That was offset by a net inflow of 6300 from the UK, 5900 from India and 3500 from China.