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

 

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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