Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search


N.Z. consumer confidence slips

N.Z. consumer confidence slips, short-term pain anticipated

Dec. 22 - New Zealand consumer confidence slipped this quarter, amid expectations that the short-term economic outlook has worsened amid a global slump.

Consumer confidence fell to 101.3 in the December quarter from 104.8 three months earlier, according to the Westpac McDermott Miller Consumer Confidence Index. A number above 100 indicates optimists outnumber pessimists. Confidence has revived from 81.7 in the June quarter.

“In the eyes of the consumer, not even lower fuel prices, the sharp fall in interest rates, or the new government can rescue the New Zealand economy from the wrath of the global downturn," said Donna Purdue, Westpac senior economist.

Government figures tomorrow are expected to show the economy shrank 0.5% in the third quarter extending the nation's first recession since 1998. Khoon Goh, senior markets economist at ANZ National Bank, predicts the slump will extend into next year, with a contraction of 1% over the 2009 calendar year.

A net 45% of consumers surveyed expect economic conditions to worsen over the next 12 months, a deterioration from the net 17% seeing poorer times ahead in September. The gloomy short-term outlook shows “clearly, the bad news from offshore is getting through to consumers,” Purdue said.

The decline in confidence in the latest period was felt most intently in dairy farming regions, such as Canterbury and Waikato, suggesting the prospect of reduced payments for milk will erode farm incomes in the next 12 months.

Long-term, consumers are upbeat about the economy, with a net 51.6% expecting the economy to be in better shape in five years, according to the survey.



© Scoop Media

Top Scoops Headlines


Any Questions: Scoop Launches New Q&A Website

It’s an easy way to find out party positions and allows you to view candidates’ answers side by side. It’s also a way for you to make your voice heard this election, and get the parties talking about the things that are important to you. More>>


Scoop HiveMind Project: Universal Basic Income - Are We Up For It?

This is an opportunity for you as one of the 4 million potential funders and recipients of a Universal Basic Income to collectively consider the issue:
1. Is UBI is a desirable policy for New Zealand; and
2. How should a UBI system work in practice. More>>


Lyndon Hood: National Announces Plan To Hit Youth With Big Mallets

The National party has announced its youth justice policy, which includes a controversial plan for recidivist serious youth offenders to be hit over the head with a comically large rubber mallet. More>>


Lyndon Hood: This ->

It's been brought to my attention that Labour's new campaign slogan is "Let's do this". A collective call to action. A mission. I myself was halfway out of the couch before I realised I wasn't sure what it was I was supposed to do. More>>


Scoop Hivemind Report: What New Zealanders Think About Affordable Housing

Ordinary citizens have had very few venues where they can debate and discuss as to what they believe has led to the crisis in affordable housing and how we might begin to address this. The HiveMind on affordable housing was about redressing the balance. More>>


New Hivemind Exploration: Opening The Election - Freshwater Quality

This is an opportunity for you as one of the 4 million guardians of our common water resources to help us find mutually agreeable solutions to the critical task of collectively managing these resources for health and sustainability. More>>