Confidence on the increase

Investor confidence began to rise at the end of last year  as the slow grind of the economic recovery continued.
The latest ASB Investor Confidence Survey showed the number of investors expecting their returns to improve jumped to 19 per cent for the December quarter.
This was a net 4 per cent rise on the previous quarter.
Private banking and wealth management head Jonathan Beale said this marked the first rise in investor confidence in a year.
"There is no doubt the economy went through a flat patch in the middle of 2010. Investors have been jaded by the slow recovery, but confidence looks to have turned a corner again, as the looming spectre of a double-dip recession fades."
Term deposits remained the most popular investment class, with 21 per cent of investors believing they offer the best rate of return - up 1 per cent on the previous quarter.
Beale said this put term deposits back to their highest level of popularity, which was last achieved in the third quarter of 2008.
"However, when we looked at a breakdown of the data by month, there was a definite dip in term deposit sentiment in December, down markedly from 23 to 16 per cent. Investors are likely to have been influenced by the December Reserve Bank announcement cautioning a slowdown on interest rate rises."
Rental property kept its spot as the second most popular form of investment, with 14 per cent of respondents believing it offered the best returns.
Bank savings accounts dropped two  points to 12 per cent in third, with KiwiSaver at 11 per cent, managed funds on 9 per cent and shares at 6 per cent.
"The results show old habits die hard when it comes to rental property. Even though rentals slipped steadily in popularity following the giddy heights reached before the recession, rental property remains a firm second when it comes to views on best investment returns."
But the gap to other investment classes is closing and Beale said this could signal a longer-term decline in investor sentiment.
KiwiSaver continued its steady climb in popularity, rising ahead of managed funds and shares for the first time.
"In addition, a record 61 per cent of respondents indicated KiwiSaver would be their primary means of retirement, a percentage that has steadily increased in recent quarters."
The expectation that KiwiSaver alone would be enough to retire on was higher among people younger than 50. While 22 per cent of 18 to 49-year-olds felt KiwiSaver would be enough for retirement - up 5 per cent on last quarter - only 12 per cent of those aged 50 or older felt the same way.
"It's very encouraging to see those aged under 50 being so positive about their prospects with KiwiSaver, as this age group needs to start saving now to ensure they build up a sufficient nest egg for their retirement."