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

 


NZ consumer confidence rises for second month

NZ consumer confidence rises for second month on jobs confidence, spending power

By Suze Metherell

July 17 (BusinessDesk) - New Zealand consumer confidence extended last month's rebound from a six-month low, edging higher in July, supported by an improving labour market and the impact of a high kiwi dollar on import prices.

The ANZ-Roy Morgan consumer confidence index rose to 132.7 this month, from 131.9 in June and 127.6 in May. A reading above 100 indicates optimists outnumber pessimists. Those seeing a pickup in the economy as a whole in the next 12 months was steady at a net 34 percent, while those seeing good times over the next five years edged up 1 point to 38 percent.

Consumer confidence hasn't wavered in the face of a central bank raising interest rates and a housing market showing signs of levelling off, which ANZ New Zealand chief economist Cameron Bagrie attributed to an improving labour market and cheaper imported goods as a result of the high kiwi dollar. The Reserve Bank is widely expected to raise the official cash rate for a fourth time this year to 3.5 percent on July 24, though weak dairy prices and tamer-than-expected inflation may limit the extent of the tightening cycle.

"We're in an environment where interest rates have moved up and are projected to rise further, and the housing market has plateaued," Bagrie said. "Eyeballing the chart shows still-elevated levels of confidence. Despite this we're not seeing across-the-board spending largesse; consumers remain more prudent than they were prior to the global financial crisis."

A net 44 percent of those surveyed said it was a good time to buy a major household item, up from 42 percent last month. Those households saying they are financially better off than a year ago slipped to a net 9 percent from 13 percent, although those expecting to be better off in 12 months time improved to a net 40 percent from 34 percent.

The current conditions index slipped to 126.3 from 127.5 last month, while the future conditions index rose to 137 from 134.9 in June.

Inflation expectations jumped to 3.9 percent, the highest level since September last year, from 3.1 percent.

Confidence in Auckland and the North Island rose to the highest levels in six months, with the exception of Wellington, which fell from a seven-and-a-half year high in June. South Island confidence slipped to a seven month low and Canterbury confidence fell to an eight month low.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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