Economic downturn

House Speaker John Boehner was rewriting his plan to cut federal spending and raise the debt ceiling yesterday, after the Congressional Budget Office revealed that his Bill would not cut as much spending as he had promised it would.

The economic downturn has led to the closure of an Alexandra restaurant for the winter.

The Forsyth Barr Stadium loomed large in Dunedin's building activity figures last year, with the project pushing up the value of building consents for the year by $116 million.

The latest Crown accounts show the impact of the recession will be felt for some time, Finance Minister Bill English says.

The pick-up in population growth continues to fuel demand for housing, just as it has done for the past six months, ASB economist Jane Turner says.

Up to four jobs could be lost at Dunedin exporter Farra Engineering following cancellation of a $1.8 million contract and the "recession in general", according to chief executive John Whitaker.

The severe toll the recent recession took on New Zealand's labour market was confirmed yesterday when figures released showed that the country's unemployment level reached 6.5% in September.

The Waitaki District Council has defended a substantial increase in its building-consent fees, despite a concern it could hinder development during the economic recession.

Early indications of an economic recovery might not be as strong as many people hope, Treasury said today.

Signs the economy may have stopped shrinking do not signal the end of hard times, Finance Minister Bill English said today.