Global gloom hits consumer confidence

Photo / Herald on Sunday

New Zealand consumer confidence fell slightly this month in the face of growing unease about the global economy, which is keeping kiwis relatively cautious about spending.

The ANZ-Roy Morgan Consumer Confidence measure fell 0.3 points to 112.2 in October. The future conditions index fell 0.3 points to 117.2 and the current conditions index fell 0.4 points to 104.8.

A reading of 100 marks the neutral line between that divides pessimists from optimists.

"The current global backdrop would normally be associated with a sharp tail-off in consumer confidence," said ANZ chief economist Cameron Bagrie.

"To date, this has failed to occur. Hence we find the spirit of the results encouraging."

Those who deemed it a good time to buy a major household item fell to a net 18 percent from a net 29 per cent in last month's survey.

A net 9 per cent said they were worse off than a year ago, an improvement from the net 19 per cent who felt worse off in last month's survey.

Looking ahead 12 months, a net 29 per cent expected to be better off, up from a net 24 percent in the previous survey. Looking at New Zealand as a whole, a net 5 per cent thought the country would be in worse shape in 12 months time, from a net 4 per cent last month.

Households expect annual inflation to average 3.4 percent over the next two years, down from 3.9 per cent in the September survey.

House prices are seen rising an average 2.7 per cent in that time, little changed from last month's 2.8 per cent.