Article – BusinessDesk
Sept. 13 (BusinessDesk) New Zealand consumer confidence slipped this month although the mood remains buoyant.
NZ consumer confidence slips in September, mood remains buoyant
By Tina Morrison
Sept. 13 (BusinessDesk) – New Zealand consumer confidence slipped this month although the mood remains buoyant.
The ANZ-Roy Morgan consumer confidence index dipped to 119 in September from 123 in August. The current conditions index fell 6 points to 116 while the future conditions index dropped 3 points to 121.
“This is not ominous,” ANZ New Zealand chief economist Cameron Bagrie said in his report. “Levels of confidence remain elevated and consistent with a decent pace of momentum across the spending side of the economy.”
The combination of consumer confidence and business sentiment surveys signal an economy in a firm economic expansion with the potential for growth to accelerate to around 3.8 percent by January 2014, according to ANZ.
The latest monthly figures are consistent with a more moderate and more sustainable pace of consumer spending, Bagrie said. Moderating sentiment good be seen as a positive development if spending trends follow because retail sales had started to outpace incomes and credit growth was rising faster than wages, he said.
Of the 959 respondents, a net 36 percent consider now a good time to buy a big ticket item, down from 41 percent in August. A net 4 percent said they were worse off now than a year ago, compared to a net 2 percent saying they were better off in August, while a net 28 percent expect to be better off in a year’s time, down from a net 32 percent last month.
A net 13 percent of respondents predict better economic conditions in the coming year, down from a net 16 percent in August, and a net 22 percent see good times ahead in the coming five years, down from a net 24 percent last month.