No dent in Kiwi consumer confidence
Consumer confidence is up despite negative headlines, according to a just-released survey.
Consumer confidence is up despite negative headlines, according to the just-released ANZ-Roy Morgan New Zealand Consumer Confidence survey.
During the time the survey was conducted (between 25 July and 7 August) the confidence measure rose 3.9 points to 113.3 in August, more than recovering from its 3.1 drop in July. This is its highest level since January, but still below the historical average of 118.3.
The future conditions index and current conditions index also increased: from 115.6 to 118.1 (future) and 100.1 to 106.1 (current) respectively.
This increase in confidence is especially significant given the turbulent economic conditions overseas during the time the survey was conducted; the US debt ceiling and credit downgrade, the European debt crisis, equity market declines.
Domestically, there were indications interest rates could increase soon, and a New Zealand dollar that moved sharply up and then down again.
Authors of the survey report ANZ head of market economics and strategy Khoon Goh and Roy Morgan Research head of New Zealand operations Mark Dansey say this suggests domestic conditions have continued to improve sufficiently for consumers to feel more positive (or less downbeat) about prospects.
“Given that the New Zealand equity market has taken a beating and house prices nationally are not really going anywhere, this leaves an improving jobs market as the most likely candidate for explaining the rise in confidence.”
Charlotte Woodfield
Thu, 11 Aug 2011
Thu, 11 Aug 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
No dent in Kiwi consumer confidence
16332