Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZers vote with their wallets on economic outlook

Media Release 23 January 2013

New Zealanders vote with their wallets when it comes to assessing the country’s economy and economic outlook

Despite a recent global survey suggesting an uncertain outlook for our economy, cold hard data from New Zealand’s leading credit bureau shows New Zealanders are increasingly confident about their economic situation.

Veda Managing Director John Roberts says “We can talk ourselves out of feeling good or we can read the numbers – and I say the New Zealand economy is picking up and New Zealanders know it.”

“We see 98 percent of all credit inquiries made in New Zealand on a daily basis and this along with market data reveals the exact opposite of recent doom and gloom qualitative surveys conducted offshore.”

Here house prices are climbing, there was a 25.8 percent increase in the NZX50 in 2012 while a strong Kiwi dollar indicates international investors believe the country is a good place to have their funds.

All this translates to an upswing in consumer confidence in New Zealand. Veda’s data shows credit enquiry volumes consistently growing.

Consumer credit activity increased by 8.07 percent for the month of December 2012 compared with December 2011. It is the second consecutive year showing an increase in inquires, indicating the beginnings of a revitalised credit cycle.

The bulk of this activity is in mortgage applications – reflecting not only demand for housing and a buoyant housing market but also strong competition in the mortgage space with major banks reducing fixed term interest rates.

Mortgage applications were up 19.71 percent in December 2012 compared with 12 months earlier. Generation Y and X led the applications over Baby Boomers.

Mr. Roberts says that this quiet rebound in the credit cycle is already showing signs of maturity with consumers appearing to choose personal loans and hire purchase over credit cards.

Veda’s data shows credit card applications down by 4.53 percent for December 2012 compared with December 2011 while the same comparison puts personal loan applications up 11.83 percent and hire purchase applications up 8.79 percent.

That borrowing could well have gone towards a new car. In December alone there was a 14.6 percent increase in new car registrations compared with December 2011.

“I am optimistic about 2013 and it is clear many other New Zealanders feel the same way,” Mr Roberts says.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news