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

 


NZ consumer confidence sinks to 10-month low

NZ consumer confidence sinks to 10-month low amid signs growth has peaked

By Jonathan Underhill

Aug. 21 (BusinessDesk) - New Zealand consumer confidence fell to a 10-month low in August, suggesting rising interest rates, weaker commodity prices and waning house price inflation are denting sentiment in an economy that may be growing at a slower pace.

The ANZ-Roy Morgan Consumer Confidence Index fell 7 points to 125.5, snapping two months of gains. The current conditions index eased to 123.4 from 126.3 and the future conditions index dropped to 126.9 from 137.

Confidence dipped across all indicators in the survey. Those saying they were better off financially than a year ago fell to a net 7 percent from 9 percent, while those expecting to be better off in a year's time fell to 35 percent from 40 percent. The survey comes after the Treasury this week shaved its forecasts for economic growth, while still seeing enough tax revenue to return to surplus next year.

"The economy may be moderating from a gallop to a canter but we're still growing solidly," said Cameron Bagrie, chief economist at ANZ New Zealand Bank. "Various leading indicators of momentum - the tightening in financial conditions and lower commodity prices - foretell a deceleration in growth. Conversely, lagging indicators such as employment growth remain more robust."

The August survey shows those expecting New Zealand as a whole will enjoy good economic times in the year ahead fell to a net 20 percent from 34 percent, while looking five years out, it fell to a net 26 percent from 38 percent.

Asked whether it was a good time to buy a major household items, a net 40 percent said yes, down from 44 percent a month ago. Those expecting prices in general to rise in the next two years fell to a net 3.3 percent from 3.9 percent. Those seeing a rise in house prices in that period slipped to a net 3.6 percent from 4.1 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news