NZ consumers positive, but wary: survey
AUCKLAND: New Zealand consumers have remained relatively upbeat about the state of their finances, but are growing more wary about the wider economy.
The ANZ Roy Morgan consumer confidence index decreased 0.9 of a point to 120.8 in February, holding near its longterm average.
While the current conditions index increased 2 points to 126.2, the future conditions index was down 2.8 points at 117.3.
The survey showed more consumers are feeling comfortable with their own budgets than they did a year ago, with a net 14% of the 1001 respondents, saying they are better off financially now, compared to 12% in January.
But that optimism about where they will be in a year’s time has eased to a net 27% picking healthier finances, compared to 29% in January.
‘‘Consumers are feeling relatively serene. There is perhaps a touch of wariness regarding the overall economic outlook, but slightly aboveaverage confidence regarding their personal situations,’’ ANZ Bank New Zealand senior economist Liz Kendall said in a note.
Unlike business confidence surveys, consumer sentiment has remained relatively upbeat since the formation of the Labourled coalition in late 2017, helped by the labour market remaining strong and targeted assistance through transfers such as Working For Families and the winter energy payment bolstering household finances.
ANZ’s sister survey of business confidence on Thursday showed firms were gloomier in February, belying expectations that they were coming out of their funk, with fewer companies expecting their own activity to improve and a growing number feeling the strain of tightening margins.
Ms Kendall said a composite measure of the two surveys suggested economic growth had slowed, and will average about 2.5% over the next couple of years.
Yesterday’s survey showed a net 9% expect the economy to experience good times over the coming year, down from 12% in January, while 15% are optimistic on a fiveyear horizon, down from 20% a month earlier.
A net 39% of respondents thought now was a good time to buy a bigticket item, up from 36% in January.
Government data this week showed retail spending through the December quarter was much stronger than economists were predicting, as pharmaceuticals, dutyfree goods, and food services had made big gains. — BusinessDesk