Consumer confidence slipped a little in the December quarter but remained positive, according to the Westpac McDermott Miller consumer confidence index.
The latest index reading came in at 116.9, from 120.3 in September. An index number above 100 indicates optimists outnumber pessimists.
Westpac senior economist Donna Purdue said confidence had
soared to a four-year high in the September quarter, after news the recession was near an end brought widespread euphoria.
"However, the past three months have seen consumers fine-tune their expectations of the future, and confidence has slipped as a result," she said.
At the latest level, confidence remained well above average, and implied a solid pick up in spending during the Christmas period.
Most of the decline in the December quarter came from an adjustment to expectations of the medium term economic outlook and consumer's assessment of their year-ahead financial position, Mrs Purdue said.
As a result, the future conditions index fell to 128.8 from 134.7, while consumers' assessment of present conditions was broadly unchanged at 99.0.
A net 52 per cent of respondents expect good economic times in the next five years, down from the record 63 per cent in September.
Optimism towards the short term economic outlook dropped from a net 17 per cent to a net 14 per cent, while a broadly unchanged net 19 per cent of respondents said now was a good time to buy major household items.
- NZPA
