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

 


NZ consumer confidence near four-year high

NZ consumer confidence near four-year high ahead of Christmas retailing

By Paul McBeth

Dec. 13 (BusinessDesk) - New Zealand consumer confidence was near a four-year high in the lead-up to the Christmas season, an all-important period for retailers.

The ANZ-Roy Morgan consumer confidence index increased 1 point to 129.4 in December, the highest level since January 2010. Seasonally adjusted, the measure was at its highest level since February 2007. A net 39 percent of 1,063 people surveyed thought it was a good time to buy big ticket items, up from a net 33 percent in November, auguring well for retailers who’ve been under margin squeezes as they battle for market share by discounting prices.

The current conditions index rose 2.4 points to 123.8, a six-year high, and the future conditions index edged up 0.1 of a point to 133.2.

“Both augur well for the Christmas shopping period and also the wider economy,” ANZ New Zealand chief economist Cameron Bagrie said in his report. The survey is “telling us something about the economic expansion we’re in: it has real legs and further to run.”

Combined with business confidence surveys, today’s report signals potential growth of 5 percent or more, something Bagrie said looked like a stretch.

Reserve Bank governor Graeme Wheeler yesterday signalled a steeper track for interest rate hikes next year as the momentum in the economy stokes inflationary pressures, and will need him to lean against potential price rises.

Today’s survey predicts consumer price inflation rising an annual 3.8 percent over the next two years, up from 3.2 percent in November. That’s well ahead of the Reserve Bank’s expectations for the CPI, which it sees increasing at a pace of about 1.5 percent in 2014, edging up to 2 percent the subsequent year.

Annual house prices are seen as increasing 4.4 percent a year for the next two years, up from 4.2 percent.

A net 9 percent of respondents said they were better off financially now than they were a year ago, down from a net 10 percent in November, and an unchanged net 37 percent expect to be better off this time next year.

A net 27 percent expect the economy to improve in the coming 12 months, unchanged from November, and a net 35 percent see good economic times over the next five years, also unmoved.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news