15 Oct 2015

Consumer confidence up this month - survey

8:02 pm on 15 October 2015

The ANZ-Roy Morgan Consumer Confidence Index has nudged up 4 points to 114.9 this month, the second consecutive monthly gain.

A reading over 100 indicates optimism.

ANZ senior economist Philip Borkin said confidence was being driven in part by an increase in dairy prices.

"The biggest gains in confidence appear to be in more dairy-aligned regions. Also, mortgage interest rates have continued to fall and regional housing markets are benefiting as Auckland's strength spills over," he said.

But Mr Borkin said there were still plenty of things to be cautious about.

"Unemployment is rising again, dairy incomes are still tight and the global backdrop is concerning," he added.

The index showed that those who believed they were better off financially than last year fell to zero, from 6 in September.

October highlights:

  • The ANZ-Roy Morgan Consumer Confidence Index lifted a further 4 points to 114.9 - the second straight gain and the highest level in four months.
  • Expectations regarding the economy one year ahead rose from -12 to 2; still below historical averages, but well up from the three-year low in August.
  • Sentiment regarding the economy's performance five years ahead rose to 18, the highest since May.
  • The number of people who believe it is a good time to buy a major household item rose to 31 from 24.
  • Those feeling they are financially better off than last year fell to zero, from 6 in September.
  • The Current Conditions Index was broadly unchanged, at 115.4 - an important stabilisation.
  • Confidence rose in all regions (seasonally adjusted) and is now the strongest in Canterbury, just ahead of Auckland.
  • House price expectations eased in all regions but Wellington, where they are now strongest.

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