Local confidence in the New Zealand economy is rising.
Today's release of the ANZ-Roy Morgan consumer confidence index shows it jumping to a six month high.
This comes after the ANZ business confidence index recently did something similar.
The bank's economists now say this is significant and "suggests the economy will move beyond consolidation and into a strengthening phase in 2016".
They say not only are consumers more upbeat about the economy, more people are feeling financially better off than they were a year ago.
And they say their survey shows more people think now is a good time to buy a major appliance than previously.
"Low mortgage interest rates look to (be) working their magic. While this is not great news for savers, it is a boon to borrowers provided they don’t completely lose the plot; borrow and spend style growth can only be a temporary phenomenon."
"Amidst still challenging times for some sectors (dairy) and a slight lift in the unemployment rate, it foretells of an economy that is far broader than cows alone. Witness surging tourism inflows for example, with the sector set to outdo dairying as our largest source of export receipts over the year ahead."
All regions experienced a lift in confidence for the second straight month, according to their tracking. Canterbury consumers remain the most optimistic, but the most ground has been made up by the regional North Island.
Auckland confidence is now in the middle of the pack, and while confidence in the capital is picking up, it remains the least optimistic overall.
Consumer confidence
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4 Comments
"While this is not great news for savers..."
Actually, in my case it is good for me. In an overall sense. I've been made redundant but I happen to have saved enough not to need to find another job. Plus I don't trust the banks to not go bust sometime in the future what with covered bonds, OBR etc. So I will start living off my savings (capital incl) now. Somewhat earlier than what I may have done but its got a nice contrary-to-what-everyone-else-is-doing feel to it. So I'm not a jobseeker, not paying the govt any income tax revenue but then again I'm not on any benefit either. Just neutral from the govts point of view. The govt will just allow 1 more immigrant to do the job that I may have applied for had I not been so worried about the security of my money. 1 more Ak house needed. Unintended consequences of low interest rates and those rather obnoxious covered bond + OBR regs...
And they say their survey shows more people think now is a good time to buy a major appliance than previously.
LOL - I guess we are bound to being a nation of shopkeepers.
"To found a great empire for the sole purpose of raising up a people of customers may at first sight appear a project fit only for a nation of shopkeepers. It is, however, a project altogether unfit for a nation of shopkeepers; but extremely fit for a nation whose government is influenced by shopkeepers."
— Adam Smith, The Wealth of Nations
could be cheaper next week
http://www.radionz.co.nz/news/national/289483/food-prices-fall-amid-rec…?
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