Consumer confidence rises on back of house prices

By Paul McBeth

New Zealand's economy has been underpinned by an expanding population, strong tourism, and a buoyant property market stoking consumer spending. Photo / Richard Robinson
New Zealand's economy has been underpinned by an expanding population, strong tourism, and a buoyant property market stoking consumer spending. Photo / Richard Robinson

New Zealand consumer confidence rose in October as rising house prices and a strong labour market keep people upbeat, further supporting economic growth.

The ANZ-Roy Morgan consumer confidence index increased to 122.9 last month from 121 in September, with people more optimistic about the country's outlook. The current conditions index slipped 1.4 points to 122.7, while the future conditions index gained 4.1 points to 123.1.

New Zealand's economy has been underpinned by an expanding population, strong tourism, and a buoyant property market stoking consumer spending, while the labour market has remained robust with new jobs being created for the inflow of migrants.

"GDP [gross domestic product] growth is accelerating and the unemployment rate has fallen to 5.1 per cent as good candidates become harder to find," said ANZ Bank New Zealand chief economist Cameron Bagrie.

ANZ's composite confidence gauge, which combines the business and consumer indicators, estimates annual GDP growth rising to 4 per cent through the rest of the year, though Bagrie said a lack of capacity seems a more likely hindrance than dwindling demand.

"There is little debate: people are feeling pretty good."

- BusinessDesk

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