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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news