New Zealand’s economy looks to be settling back into its rhythm as the disruption from Omicron gradually wanes, according to the latest Truckometer index from ANZ Bank.

This month’s data shows heavy traffic movements, which includes trucks and buses, fell 1.7% in May, compared with a 2.4% gain in April.

However, ANZ chief economist Sharon Zollner said while the heavy traffic index continued on an upward trend, labour shortages in the trucking sector remain “extreme”.

“That’s not to say that we are back in a world where we can estimate demand and assume the supply will be there to meet it,” she said.

“Labour shortages in the trucking industry remain extreme, as they are across most of the economy. Omicron and now flu-related absences are not helping.”

Zollner said light traffic was holding up remarkably well in light of near record-high petrol prices and a reluctance to spend from consumers.

Traffic data from April and May suggested GDP growth would likely be positive in the June quarter.

“Overall, the data continues to show the economy settling back into its rhythm as the disruption from Omicron gradually wanes.”