Confidence at highest in six months

"From about the middle of the year consumer confidence plateaued below historical averages, and spirits were generally low," ANZ Bank New Zealand chief economist Cameron Bagrie says in his report. Photo / Glenn Taylor

Sentiment continues to climb from August’s three-year low.

Consumer confidence has risen to a six-month high this month as sentiment continues to recover from a slump to a three-year low in August.

The ANZ-Roy Morgan consumer confidence index increased 8 points to 122.7, marking the highest level since May. The current conditions index rose to 123.5 from 115.4, while the future conditions component increased to 122.2 from 114.6.

"From about the middle of the year consumer confidence plateaued below historical averages, and spirits were generally low," ANZ Bank New Zealand chief economist Cameron Bagrie says in his report.

"The last few months have seen a turnaround, in what looks to be a well-timed run to Christmas."

New Zealand's economy appears set to move beyond consolidation and into a strengthening phase next year, buoyed by low mortgage interest rates and as weakness in some parts of the economy, such as the dairy sector, is offset by stronger sectors such as tourism, Bagrie says. The latest report shows all regions recorded a lift in confidence for a second straight month, led by Canterbury.

A net 9 per cent of the 999 people surveyed said they were better off financially than this time last year and a net 30 per cent expected to be better off in a year's time, the highest level in seven months.

Their view of the economic outlook improved, with a net 15 per cent expecting good times ahead in the next 12 months, up from a net 2 per cent last month and a turnaround from the net 16 per cent seeing bad times ahead in the August survey.

They were also more upbeat about the longer-term, with a net 21 per cent seeing good times over the next five years, up from a net 18 per cent last month and marking a six month high.

A net 38 per cent of respondents said it was a good time to buy a major appliance, up from a net 31 per cent last month and marking the highest level since June, helped by declining mortgage rates and a plateauing kiwi.

Annual inflation expectations rose to a 4-year high of 4.1 per cent, against 3.6 per cent forecast last month.

Meanwhile, expectations for house price inflation slipped to 4.4 per cent, the lowest level this year, from 4.8 per cent last month, as expectations for Auckland house prices cooled.

Aussie jobs bounce back

Australia doesn't need a mining investment boom to generate strong employment growth.

That's the message from the strong jobs figures from the Australian Bureau of Statistics yesterday which showed unemployment has slipped to 5.9 per cent.

That's as low as it's been since November 2013 and well under the recent peak of 6.4 per cent where it started this year.

The jobless total last month was 739,500, down 55,300 from the 794,800 high in July and the lowest since May last year.

So far in the second half of this year an average of just under 30,000 a month is being added to the national payroll.

In 2011, as mineral commodity prices hit record highs, the number of people with a job rose by an average of only 6000 a month.