Sharechat Logo

Consumers more gloomy about economic outlook: Roy Morgan

Monday 13th October 2008

Text too small?
New Zealand consumers grew more pessimistic about the economic outlook this month, amid signs of a widening global slowdown that will erode demand for the nation's exports.

Some 51% of respondents expect the economy to deteriorate over the next 12 months, and 47% say they're worse off financially than they were a year ago, according to the Roy Morgan survey.

The central bank is expected to cut the official cash rate at least 50 basis points to 7% on October 23 in what may be its steepest easing cycle since 2001 to revive an economy in its first recession in a decade. Economists such as Shamubeel Eaqub at Goldman Sachs JBWere say New Zealand is yet to feel the second-round effects of recession, including job losses and a rising unemployment rate.

"As the global slowdown intensifies, New Zealand must increase domestic consumption to drive growth and the best way to support the domestic economy is with lower interest rates," said Gary Morgan, a spokesman for Roy Morgan.

Government figures today showed retail sales gained 0.4% in August, slightly above the 0.3% pace predicted in a Reuters survey of economists.

The percentage of people seeing worse times ahead rose from 40% in the previous fortnightly poll. It also showed 39% think it is a good time to buy a major household item, while 49% said it was a bad time.

Some 55% of New Zealanders expect their family to be better off financially this time next year, up 1% from the previous survey.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

EROAD Limited (NZX: ERD) launches Clarity Solo Dashcam
22nd October 2021 Morning Report
Pictor ready to roll out game-changing COVID antibody test in New Zealand
Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report
Greenfern Industries Limited (NZX: GFI) L&Q Notice
TruScreen Group Limited (NZX: TRU) Clinical Trial Results Highlight Efficacy of TRU Technology
20th October 2021 Morning Report
Freightways Limited (NZX: FRE) Acquisition of ProducePronto
19th October 2021 Morning Report