Consumer confidence holding steady
CONSUMER confidence has remained steady during September, appearing to ignore business confidence which has been pessimistic for much of the past three months.
The ANZ Roy Morgan consumer confidence index was unchanged at 117.6 points in September, matching its longrun average, ANZ Bank New Zealand economist Liz Kendall said.
‘‘The growth indicators out of business surveys are impacted around times of political change, and we await further evidence to assess how large the growth hiccup may prove,’’ she said.
The economic headwinds were real, with both the growth drivers of house prices and the population fading, while commodity prices appeared to have peaked.
‘‘But monetary conditions and fiscal policy are stimulatory and, barring a global shock, we suspect the economy will muddle through,’’ Ms Kendall said.
The survey found consumers’ perceptions of their current financial situations were unchanged, with a net 12% feeling financially better off than a year ago, and a net 27% expected to be better off financially this time next year, up by one point.
However, just 29% of the 1009 respondents thought now was a good time to buy a major household item, down six points to the lowest in three years.
‘‘Perceptions of current conditions remain strong, but there is some caution about the future, particularly around the broader economy rather than respondents’ own financial situations,’’ Ms Kendall said.
The composite confidence gauge, which combines the recent business and consumer surveys, indicates slowing economic growth.
Government data last week showed gross domestic product grew 1% in the second quarter, and 2.7% annually, which beat expectations of analysts and the Reserve Bank, she said. — Additional reporting: BusinessDesk