Brian Fallow

The Economics Editor of the NZ Herald

Consumer confidence in festive mood

Shoppers' buoyant mood is a good sign for retailers. Photo / Natalie Slade
Shoppers' buoyant mood is a good sign for retailers. Photo / Natalie Slade

Consumers are in a buoyant mood, auguring well for retailers' festive season takings.

The ANZ Roy Morgan consumer confidence index edged up one point from November to 129.4, its highest level since January 2010. Seasonally adjusted it is at its highest level since February 2007.

In Auckland and Wellington, confidence is at a four-year high.

Three of the survey's five main sub-indices are unchanged on last month at high levels: respondents' views on their own financial prospects in the year ahead and their views on the outlook for the economy one year and five years ahead.

While the net balance of consumers who feel better off than a year ago eased fractionally, at a net 9 per cent positive, compared with 10 per cent in November, the level was well above the net 7 per cent negative last December, ANZ chief economist Cameron Bagrie said. More encouraging for durable goods retailers was the rise in the balance of respondents viewing it as a good time to buy a major household item - up six to a net 29 per cent positive - a four-year high after a period of declines, Bagrie said.

House price inflation expectations have firmed, to 4.4 per cent from 4.2 per cent last month.

- NZ Herald

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