Sharechat Logo

NZ consumer confidence falls in April as future outlook get murkier

Friday 27th April 2018

Text too small?

New Zealand consumer confidence dropped back to long-run averages in April as consumers grew less optimistic about their financial futures.


The ANZ Roy Morgan consumer confidence index fell 7.5 points to 120.5 in April, slightly above the historical average. The current conditions index dropped 5 points to 123.1 while the future conditions index fell 9 points to 118.7.


Of the survey's 1,005 respondents, a net 13 percent saw good economic times in the coming 12 months, down from a net 25 percent in March, and the five-year outlook dropped 7 points, with a net 18 percent seeing good times ahead.


A net 9 percent of respondents felt they and their families were better off financially than this time last year, from a net 16 percent in March, and a net 25 percent expect to be better off financially a year from now, down from 34 percent.


"A strong labour market, low interest rates and a steady housing market are supporting sentiment. Nonetheless, consumers appear to be feeling a little less bullet-proof, with a more historically typical degree of wariness of what the future may bring, despite still-strong perceived current conditions," said Sharon Zollner, chief economist at ANZ Bank New Zealand. "Overall, the data is still suggesting decent consumption growth but is consistent with our expectation that household saving rate will gradually lift – which would be a good thing in our view, in light of elevated household debt levels."


A net 37 percent of those surveyed said it was a good time to buy a major household item, down from 39 percent in March, which ANZ said remained strong and bodes well for durables spending.


Respondents expected house prices to rise 4.1 percent per year over the next two years, up from 3.5 percent the previous month, with house price growth expectations highest in Wellington at 4.9 percent. Prices were generally expected to rise 4 percent per year over the next two years, from 3.4 percent in March.


"Household inflation expectations are very volatile. But we’ll be watching next month’s outturn with great interest to gauge whether the April lift is just another short-lived spike or possibly the start of something more meaningful," Zollner said. 



  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:

Gold Report 21st May 2019
NZ dollar falls after RBA governor flags potential rate cut
ASB reviews ownership of Aegis
Auckland Airport kicks off next phase of expansion
Cashed-up Plexure eyes acquisitions to accelerate growth as loss shrinks
Tower turns to 1H profit, lifts FY guidance
IRD should have doubled claim against Watson's Cullen Group - Professor
Investore FY profit falls 16% on smaller valuation gain, signals flat dividend for 2020
Synlait receives cease and desist letter regarding Pokeno plant
21st May 2019 Morning Report

IRG See IRG research reports