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New Zealand consumer confidence rose to the highest in more than 3 ½ years this month as kiwis became more confident about the outlook for the economy and their own finances.
The ANZ-Roy Morgan consumer confidence index rose 6 points to 128.4 in November, the highest since January 2010. Seasonally adjusted, the measure was still at a 3 ½-year high. The current conditions index edged up 1 point to 121.4 while the future conditions index advanced 9 points to 133.1
Consumer confidence is almost matching the level of confidence among businesses, with the ANZ Business Outlook for October recording a net 53 percent of firms saw a pickup in general business conditions in the year ahead. That’s near the highest level in more than four years and bodes well for the outlook for the New Zealand economy in 2014 and beyond.
“Confidence is not the key driver of an economic expansion but is nonetheless critical for keeping it on track,” said ANZ chief economist Cameron Bagrie said in a statement. “”New Zealand is heading into the festive season in incredibly good cheer in this regard.”
Those consumers surveyed for today’s report were feeling better than they were this time last year, with the net positive balance rising to 10 from 7.
Once they start thinking ahead, though, confidence picks up. A net 37 percent expect to be better off in a year’s time, from 32 percent a month earlier, while those expecting the whole economy to improve in the year ahead jumped to 27 percent from 16 percent. Those seeing good times ahead in the next five years rose to 35 percent from 23 percent.
Those deeming it a good time to buy a major household item slipped to 33 percent from 34 percent.
Price expectations remained relatively static, with an expectation they will rise about 3.2 percent annually for the next two years. In the same period, house prices are seen rising 4.2 percent, up from the 3.7 percent gain seen in the October survey.
(BusinessDesk)
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NZ consumer confidence at highest since January 2010 on rosier outlook
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