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

 

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO: