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

 

Manawatu-Whanganui Projects: PGF Top-Up To Rural Broadband Roll-Out

The government has effectively raided the $3 billion Provincial Growth Fund to top up the budget for the second phase of its rural broadband initiative, filling in mobile 'black spots' and ensuring broadband is available to marae that don't have access now. More>>

ALSO:

Other Windy Cities: Auckland-Chicago Named A Top 10 ‘Most Exciting’ New Route

The inclusion of Auckland-Chicago on Lonely Planet’s Where to fly in 2019? The 10 most exciting new flight routes list comes just two weeks before Air New Zealand prepares to celebrate its inaugural flight to Chicago’s O’Hare International Airport on 30 November. More>>

Deadly Strain: ESR Ups Its Reporting On Meningococcal Disease

The increasing number of cases of Group W Meningococcal disease (MenW) has prompted ESR to increase its reporting on the disease to the Ministry of Health. ESR has upped its reporting to weekly. More>>

ALSO:

Very Small Things: "Game-Changing" 3D Printing Technology Launched

New Zealand microfabrication researchers Andrea Bubendorfer and Andrew Best, the co-inventors of a new way of fabricating very small things with Laminated Resin Printing (LRP), are part of Callaghan Innovation’s MicroMaker3D team launching the new patent pending technology in the US this week. More>>

ALSO: