Consumer confidence creeps up in April as Kiwis embrace upbeat economic outlook
The ANZ-Roy Morgan consumer confidence index increased to 120 in April.
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New Zealand consumer confidence rose in April as Kiwis remained optimistic about the state of the economy, shrugging off concerns a downturn in the dairy sector would spread across the nation.
The ANZ-Roy Morgan consumer confidence index increased to 120 in April from 118 a month earlier, just above the historical average. Both the current conditions and future conditions indexes gained by two points to 123.2 and 117.8 respectively.
"If they wanted to, there are a number of things that consumers could get wound up about," ANZ Bank New Zealand economist Philip Borkin said in a note. "But consumers continue to just get on with it like clockwork."
Consumer optimism had dipped in the previous two months as the prospect of a downturn in the dairy sector weighed on expectations for the economic outlook. However, growth has remained robust on the strength of booming tourism and the country's labour market continues to spit out new jobs and absorb the net inflow of migrants that's swelled the working population.
Today's survey shows a net 8% of the 1000 respondents said they were better off now than they were a year earlier, unchanged from March, and a net 28% see themselves in a better position financially in 12 months' time, down from 29%.
A net 9% expect better economic conditions in the coming year, up from 3% in March, and over a five-year horizon, 17% expect more good times than bad times, unchanged from the prior survey.
Respondents were happier to buy big-ticket items, with a net 38% saying now is a good time to buy a major household item compared to 34% a month earlier, even as they expected faster price rises, predicting an annual pace of inflation of 3.5% over the next two years, compared to 2.9% in March.
On house prices, consumers expect an annual increase of 5.3% over the next two years, up from 4.4% in March.
ANZ's Mr Borkin said rising house prices added to the "feel-good factor" for consumers, even as they made it more difficult for first home buyers.
(BusinessDesk)
Paul McBeth
Thu, 21 Apr 2016
Thu, 21 Apr 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Consumer confidence creeps up in April as Kiwis embrace upbeat economic outlook
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