NZ consumer confidence lifts in January

Thursday 20th January 2011

The first ANZ Roy Morgan Consumer Confidence survey of the new year has recorded a rise in consumer confidence, particularly in earthquake-hit Canterbury, but the survey's authors say households are still cautious.

The ANZ-Roy Morgan Consumer Confidence measure lifted five points to 117.1 in January, while the current conditions index rose seven points to 105.2. This is the first time the current conditions index has been above 100 since September.

Confidence was up in every region except Auckland. Wellington topped the survey with an index value of 121.

Canterbury, which continues to experience aftershocks from last September's magnitude 7.1 earthquake, was the second most confident ranked region on 119.

On a measure of confidence about current conditions Cantabrians are just as confident as Wellingtonians.

The survey recorded a rise in the number of consumers who regard now as a good time to buy a major household item and consumers are not as negative about their current financial position.

There are also signs of an uptick in measures of inflation. House prices are expected to rise 2.1% per year on average over the next two years, lifting from December's 1.5%, but below 2.3% in November.

Households expect general inflation to average 3.9%, up from 3.5% in the December survey.

"It is too early to see if such movements flag a turning trend as allowing for the general positive bias in such measures, the rates are still low. However, it is an area worth watching," ANZ said.

Commenting on overall confidence, ANZ said that while the lift in confidence was encouraging there was little in today's survey that flags a material change in households' cautious stance.

NZPA

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