Consumer confidence bounces back

Christmas has a confident ring about it for consumers. Photo / Natalie Slade

Consumers are feeling more cheerful going into the peak Christmas trading period, the ANZ-Roy Morgan consumer confidence survey has found.

The survey's overall index rebounded 4.7 points from a 14-month low in November to 121.8. The long-run average is 118.8

The broad-based nature of the rebound was encouraging as the Christmas trading period could be a make-or-break one for retailers, said ANZ chief economist Cameron Bagrie.

A net 9 per cent of consumers feel better off financially than they were a year ago.

A net 43 per cent consider it a good time to buy a major household item, up eight points from November and the highest reading since July.

A net 29 per cent expect to be better off financially in a year's time, a four-point improvement, and expectations for the economy generally have also risen, both over the next year and the next five years.

The improvement in sentiment cannot just be put down to the time of year.

"Our seasonally adjusted estimates were up too," Bagrie said.

As possible explanations for the rise in confidence, he cites house prices rising while mortgage rates have fallen.

"Petrol prices have come down, delivering an effective pay rise. Employment prospects remain strong. Inflation is low, and in some pockets deflation rules."

The lift in confidence was widespread across age groups and regions, with 14 to 17-year-olds and Wellingtonians the only ones whose confidence ebbed.

Happy shoppers
•Consumer confidence index rebounds from a 14-month low in November.
Index is up 4.7 points to 121.8, compared with a long-run average of 118.8.
•A net 9% feel better off financially than they were a year ago.
•A net 43% consider it a good time to buy a major household item.
•A net 29% expect to be better off financially in a year's time.