Consumer confidence up slightly

New Zealand consumer confidence lifted slightly in March, continuing to recover from last year’s weakness as house price growth expectations rose.

The ANZ Roy Morgan consumer confidence index rose to 128 in March from 127.7 in February. The current conditions index rose 0.4 points to 127.7 while the future conditions index gained 0.2 points to 128.2.

Of the survey’s 1002 respondents, a net 25 per cent saw good economic times in the coming 12 months, up from 21 per cent in February. The fiveyear outlook dropped four points, with a net 25 per cent seeing good times ahead.

A net 16 per cent of respondents felt they and their families were better off financially than this time last year, from net 15 per cent in February, and a net 35 per cent expect to be better off financially a year from now, up from 34 per cent.

“Consumer confidence remains high. And why not?” said Sharon Zollner, chief economist at ANZ Bank New Zealand. “Jobs are plentiful, there’s talk of higher wages, and the Auckland housing market has found a floor. Steadiness is the theme, with confidence unchanged versus last month, and no difference between current and expected future conditions.”

A net 39 per cent of those surveyed said it was a good time to buy a major household item, down from 40 per cent in February, which ANZ said suggests robust durables spending.

Respondents expected house prices to rise 3.5 per cent per year over the next two years, up from 3.1 per cent the previous month, with Wellingtonians expecting house prices to rise 4.4 per cent. Prices in general are expected to rise 3.4 per cent per year over the next two years, from 3.4 per cent in February.

— BusinessDesk