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

 


‘Chipper’ kiwis push up consumer confidence in April

‘Chipper’ kiwis push up consumer confidence in April

April 17 (BusinessDesk) - New Zealand consumer confidence rose in April as kiwis became more confidence about their own financial position, giving them greater enthusiasm for buying major household items.

The ANZ-Roy Morgan consumer confidence index rose to 134 this month, from 132 in March. The current conditions rose to 130.3 from 125.7 and the future conditions index eased to 135.8 from 136.2.

“The economy is expanding rapidly, more jobs are being created, the housing market is still buoyant, the high New Zealand dollar is keeping the price of imported goods and those big-ticket items suppressed. Prospects for wages to move up are improving by the day,” said ANZ Bank New Zealand chief economist Cameron Bagrie. “That’s a chipper combination.”

The Reserve Bank noted the “considerable momentum” in the economy when it lifted the official cash rate a quarter point to 2.75 percent and is expected to hike the OCR to 3 percent next week to head off increasing inflationary pressures. The ANZ-Roy Morgan composite index, which combines consumer and business confidence, implies annual economic growth of almost 6 percent.

“We’re positive but not that bullish,” Bagrie said. “We’re picking solid as opposed to bumper spending trends.” While consumer sentiment is elevated, household balance sheets remain heavily indebted and the savings rate remains poor, he said. At the same time, the central bank is raising borrowing costs.

The April survey of 958 people showed a net 13 percent felt they and their families were better off than a year ago, an improvement from 8 percent in last month’s survey. Looking out a year, a net 40 percent felt they would be better off, up from 36 percent last month.

Those deeming it a good time to buy a major household item increased to a net 47 percent from 44 percent and those thinking house prices would rise in the next two years rose to 72 percent from 71 percent, while the size of the expected increase lifted to 3.9 percent from 3.8 percent.

Perceptions of the broader economy eased slightly. A net 33 percent saw better economic conditions in the next 12 months, down from 34 percent a month ago, and those seeing good times for the next five years slipped to a net 34 percent from 38 percent.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news