Consumer confidence nudges up in April

New Zealand consumer confidence nudged up in April, boding well for future economic growth.

The ANZ-Roy Morgan consumer confidence index rose to 128.8 in April from 124.6 in March. The current conditions index, a concurrent indicator of spending trends, lifted to 130.3 from 123.7, while the future conditions index edged up to 127.8 from 125.3.

"The economic engine continues to hum," said ANZ Bank New Zealand chief economist Cameron Bagrie. "Buoyant levels of consumer sentiment, in association with business optimism, augur well for real GDP growth. The economy remains on track for 3 percent real GDP growth over the year ahead."

The confidence survey of 1,009 people found a net 12 percent felt they were better off financially than this time last year, up from 9 percent in March. A net 31 percent expected to be better off financially this time next year, up from 28 percent last month.

Meanwhile, a net 27 percent expected New Zealand's economy would have good financial times in the next 12 months, up from 24 percent last month. The country was expected to have continuous good times ahead over the next five years, according to a net 25 percent of people surveyed, up from 24 percent last month.

A net 49 percent of people considered it a good time to buy a major household item, up from 39 percent last month.

Respondents said they expect consumer prices to ease to an annual pace of 2.8 percent over the next two years, down from 3.1 percent in March, and the lowest reading in the survey's history.

They predict an annual 5 percent rise in house prices over the same period, up from 4.9 percent last month. Expectations were highest in Auckland, which hit an all-time survey high of 6.5 percent.

(BusinessDesk)

Tina Morrison
Thu, 23 Apr 2015

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Consumer confidence nudges up in April