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


NZ consumer confidence slips in September, caution prevails

NZ consumer confidence slips in September as caution prevails

By Hannah Lynch

Sept 14 (BusinessDesk) - New Zealand's consumer confidence eased in September as consumers remain cautious about spending money.

The ANZ-Roy Morgan Consumer Confidence measure eased to 111.9 points in September from 114.1 in August. The current conditions index rose 2 points to 112, while the future conditions index fell 2 points to 112.

Consumers still feel financially worse off than a year ago, with sentiment slipping 3 points to minus 5, while pessimistic perceptions towards the general economy were unchanged on minus 6. Sentiment towards the economy five years from now rose 7 points to 23.

It is still seen as a good time to buy a big ticket item, with the net balance largely unchanged on 31 points.

ANZ chief economist Cameron Bagrie said consumers are reluctant to spend even as house prices continue to rise, interest rates remain low and labour income growth is solid.

"A listless trend in consumer confidence is not a bad thing. It suggests a continued focus on balance sheet repair and a lift in the savings rate," Bagrie said. "These are precursors of a more sustained upturn – eventually."

"While the lift in house prices continues to receive attention, is has not been accompanied by a marked rise in credit - Indeed credit growth continues to track below income growth as people ‘deleverage’ and strike a half-way house between spending and saving," he said.

The survey comes after New Zealand’s Reserve Bank left its official cash rate unchanged at 2.5 percent yesterday, while delaying its forecast increase in the 90-day bank bill rate, seen as a proxy for the benchmark interest rate, until 2014.

Today's survey showed inflation expectations rose 0.3 percent to 3.4 percent

Overall confidence among males eased 4 points to 116. Female sentiment was unchanged at 108.

On a regional basis Wellington recorded the largest lift in confidence, up 13 points to a nationwide high of 118. Canterbury rose 4 points to 116, while the remaining regions all weakened.


© Scoop Media

Business Headlines | Sci-Tech Headlines


FIRST Union: Do Shareholders Realise Marsden Point Conversion Could Cost More Than Half A Billion Dollars?

FIRST Union, the union representing workers at Refining NZ, are querying whether shareholders voting on Friday on whether to convert the Marsden Point refinery to an import-only terminal realise the conversion could cost $650-700 million dollars... More>>

Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>

Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>

ASB: New Support Finder Tool Helps Connect Customers With Thousands In Government Support

ASB research alongside benefit numbers from the Ministry of Social Development shows an increased number of Kiwis are struggling financially, and many may not be aware they’re eligible for government support... More>>

Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>

Real Estate: June Home Transfers Remain High
There were 44,517 home transfers in the June 2021 quarter, the highest June quarter figure since 2016, Stats NZ said today. The number of home transfers was very similar to the March 2021 quarter and was up 18,252 from the June 2020 quarter... More>>