NZ consumer confidence slips from 7-month high; Wellingtonians fade, Aucklanders upbeat

Friday 16th September 2011

New Zealand consumer confidence fell from a seven-month high in September, led by Wellington residents, while Aucklanders were more buoyant, suggesting the opposing influences of state sector job cuts and the Rugby World Cup.

The ANZ-Roy Morgan Consumer Confidence measure fell 0.7 points to 112.6 this month. The future conditions index fell 0.6 points to 117.5 and the current conditions index fell 0.9 points to 105.2. A reading of 100 marks the neutral line between that divides pessimists from optimists.

ANZ Bank head of market economics Khoon Goh said the dip in the latest month “should be seen as a sign of resilience” given turbulence in global financial markets. Warehouse Group, the nation’s biggest listed retailer posted an 8.9% drop in annual profit before items and said the retail environment is “uncertain.”

Those who deemed it a good time to buy a major household item fell to a net 29% from 33 percent in August, the ANZ-Roy Morgan survey showed. A net 19% of respondents said they were worse off than a year ago, an improvement from the net 21% feeling worse off in last months survey.

Looking ahead 12 months, a net 24% thought they’d be better off, down from a net 27% seeing better times ahead in the August survey.

Goh said the “feel-good factor” from hosting the world cup may have helped make up for the negative impact on sentiment from the deteriorating global outlook. Fonterra Cooperative Group’s confirmation of its 2011/2012 dairy payout forecast probably also underpinned confidence.

Confidence among Wellington consumers fell 11 points to 109.8, while Auckland yielded a 7.9 point jump to 120.2, the highest since June 2010. Wellington’s confidence may have been dented by the ongoing reductions in government workers, the report said.

Confidence in Canterbury rose 5.9 points to 116.1, second highest after Auckland.

Looking out over the next five years, a net 33% thought there would be good times ahead, up from 30% in last month’s survey.

(BusinessDesk)

BusinessDesk.co.nz

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