Consumers remain in buoyant mood: survey
New Zealand consumer confidence rose in August with little sign that a cooling housing market is hurting consumer sentiment.
The ANZ-Roy Morgan consumer confidence index rose to 126.2 in August from 125.4 in July. Of that, the current conditions index was unchanged at 124.9 and the future conditions measure rose 1.3 points to 127.1.
ANZ Bank New Zealand chief economist Cameron Bagrie said that on a seasonally adjusted basis, confidence rose to its highest level since July 2014 and that yesterday’s survey shows consumers remain in a “buoyant mood”.
The latest housing data from the Real Estate Institute showed a sharp slowdown in house sales with volumes dropping 25 per cent nationwide last month compared to July 2016.
Bagrie noted, however, the moderation across the housing market “is not taking the wind out of consumers’ sails”.
A net 12 per cent of those polled felt financially better off than they did a year ago, up from 10 per cent in July, while those expecting to be better off in a year’s time rose to 35 per cent from 32 per cent.
For the economy as a whole over the next 12 months, a net 25 per cent expected better times financially versus 23 per cent last month, while on a five-year horizon, 21 per cent expected good times financially, down from 23 per cent in the prior survey.
Those deeming it a good time to buy a major household item fell to 38 per cent from 39 per cent, while 66 per cent expected prices to go up in the next 12 months, with an increase of 3 per cent. That’s down from 70 per cent and 3.4 per cent in July.
A net 60 per cent expected house prices to rise in the next two years, with an increase of 3.4 per cent. In July, 64 per cent were expecting prices to rise, by 3.7 per cent.
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Rebecca Howard