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

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news