Sharechat Logo

Consumers say, 'I'm alright, Jack', despite business gloom

Friday 29th March 2019

Text too small?

Even as businesses grow ever more gloomy, consumers are feeling not too bad.

The latest ANZ-Roy Morgan survey of consumers rose a point to 121.8 in March, well above the neutral 100 point level and about average.

Perceptions of current conditions fell a point while the future conditions index rose 2 points and those households who think it’s a good time to buy a major household item fell a point, although ANZ New Zealand chief economist Sharon Zollner says the changes were “pretty much rounding errors.”

Yesterday, ANZ’s business confidence survey for March showed pessimism among businesses fell another 7 points in March and a net 38 percent now expect worsening general business conditions in the next 12 months.

And ANZ’s composite index of both consumer and business sentiment shows economic momentum has fallen considerably and has stabilised at a low level.

That suggests economic growth will average about 2.5 percent over the next couple of years, with slower population growth and weaker housing wealth effects weighing on consumption growth, she says.

“Overall, consumer confidence remains buoyed around its historical average despite mounting global and domestic risks,” Zollner says.

“Confidence has picked up from 2018 lows (the index fell to 115.4 points in October), but caution regarding the overall economic outlook appears to be preventing a break above average levels,” she says.

“However, a high proportion of people thinking it’s a good time to buy a major household item (a net 38 percent) suggests robust household spending despite weakness in Auckland house prices and slower housing market activity.”


Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond

  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:

NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record

IRG See IRG research reports