Sharechat Logo

Consumer confidence takes another knock

Thursday 21st October 2010

Text too small?

New Zealand consumer confidence took a knock this month as kiwis put off buying major appliances amid a tight labour market and a lift to consumption tax. But optimism about the future is improving.

The ANZ-Roy Morgan Consumer Confidence survey dropped 2.8 points to 113.6 in October as more people think it's a bad time to buy major appliances and are more pessimistic about the current economic environment.  

"It is hard to gauge how much of this fall reflected the rise in GST at the start of the month, but clearly such a large fall suggests the GST rise has been influential," ANZ chief economist Cameron Bagrie said in his report.

"The decline in current conditions does not bode well for immediate appetites to spend." 

New Zealand's economic recovery lost its stride this year as households stopped spending and focused on paying back debt amid high unemployment and a dreary property market.

That prompted the Reserve Bank to pause tightening monetary policy last month and keep the official cash rate at what Governor Alan Bollard calls a "very very stimulatory" level. 

The current conditions index sank 11 points to a 14-month low of 92.3, while the future expectations component rose 2 points to 127.9.  

A net 9% of 1,071 people interviewed said they were worse off financially than a year ago, an improvement on the net 12% in September, while a net 31% expect to be better off in 12 months time, up from 28%.  

A net 10% of respondents predict New Zealand will be better off in September 2011, up from 5%, and a net 44% are picking better times in five years.  

A net 7% of people think now is a bad time to buy a major household item, compared to a net 18% thinking it was a good time to buy last month.

  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:

Fletcher Building Announces Director Appointment
Meridian issues new demand response exercise notice to NZAS
CRP - Chatham Closes Private Placement of Shares
General Finance - Olympic Term Deposit Promotion featuring a Special Bonus of 0.1%
July 22nd Morning Report
VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report