Consumer confidence slips to 14-month low   13 Nov 2014

Article - BusinessDesk

Consumer confidence slips to 14-month low

By Suze Metherell

Nov. 13 (BusinessDesk) - New Zealand consumer confidence fell to a 14-month low in November as households felt less optimistic about the future, with economic momentum cooling.

The ANZ-Roy Morgan consumer confidence index fell 1.6 points to 121.8 in November to its lowest reading in 14 months, though still above its long-term average of 118.8. The current conditions index eased 4.9 points to 119.5, while future conditions rose 0.6 points to 123.4.

"Levels of confidence remain high: it’s not until you start dipping below average that we really get put on notice," ANZ Bank New Zealand chief economist Cameron Bagrie said in his report. "We’re not reading too much yet into the trend lower in confidence. Surveyed confidence indicators never stay at their peaks for long – fewer people will say times are going to improve when times are already good!"

Lower than expected inflation figures, despite record levels of migration which should put upwards pressure on costs, has seen Reserve Bank governor Graeme Wheeler pause in his tightening cycle, after hiking the official cash rate 100 basis points to 3.5 percent between March and September. Meanwhile, falling dairy and log export prices have added to caution over expected economic growth.

"There are also some real economic risks (or growth holes) to take into account, such as the amplified slash to the dairy payout," Bagrie said. "House price gains are moderating."

Today's survey shows households still feel better off financially, compared to a year ago, with a net 4 percent of respondents more upbeat about their current position, but it's a drop from a net 9 percent in October, and a net 25 percent expect to be better off in a year's time, compared to 32 percent a month ago.

Of the 1,002 households surveyed by the bank, a net 22 percent expects good economic times in the next 12 months, up from a net 17 percent a month earlier, and looking five years ahead a net 23 percent expect continuous good economic times, compared to a net 19 percent in October.

People still thought it was a good time to buy a major household item, with a net 35 percent saying it was, down from a net 40 percent the previous month.

Of those surveyed, 73 percent predict interest rates to rise over the coming two years, at an annual pace of 3.8 percent, and 78 percent expect house prices to rise an annual 4.7 percent over the next two years.

(BusinessDesk)

Add a comment

News

Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students

29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more

New Zealand reaffirms support for Flight MH17 judicial process

7 Mar 2020 News By Rt HON WINSTON PETERS
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more

Business

NZ Government's Economic package to fight COVID-19

17 Mar 2020 Business News By RT HON JACINDA ARDERN
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more

NZ Government announces aviation relief package

19 Mar 2020 Business News By Hon Phil Twyford
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more

Living

Diversity was Key at New Zealand Trade Tasting in London

6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall. It was the first... more

Kiwi author stuns Behind the Butterfly Gate

12 Jan 2022 Arts By Charlotte Everett
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...  New Zealand writer Merryn Corcoran’s... more

Property

Fairer rules for tenants and landlords

17 Nov 2019 Property By Minister Kris Faafoi
17 NOVEMBER 2019 The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more

New Zealand Government will not implement a Capital Gains Tax

17 Apr 2019 Property By RT HON JACINDA ARDERN
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more

Migration

Boosting border security with electronic travel authority – now over 500,000 issued

19 Nov 2019 Migration By Hon Iain Lees-Galloway
19 NOVEMBER 2019 We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more

Christchurch reinstated as refugee settlement location

18 Aug 2018 Migration
18 AUGUST 2018 HON IAIN LEES-GALLOWAY The announcement that Christchurch can once again be a settlement location for refugees... more

Travel

Gallipoli Anzac Day services cancelled

19 Mar 2020 Travel & Tourism By RT HON JACINDA ARDERN
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more

New Zealanders advised not to travel overseas

19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas more

Sport

The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners

27 Oct 2019 Cricket By Charlotte Everett
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more

PREVIEW: All Blacks v England semi-final

26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

Congratulations to Loder Cup winner

26 Sep 2018 People By Hon Eugenie Sage
25 SEPTEMBER 2018 The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more

Appointments to New Zealand National Commission for UNESCO

16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO HON JENNY SALESA Associate Education Minister Jenny Salesa is... more

Recruitment

Historic pay equity settlement for education support workers

14 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more

Historic pay equity settlement for education support workers

22 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more