6 Nov 2009

Investor confidence at two-year high, survey shows

2:13 pm on 6 November 2009

The latest survey shows a turnaround in investor confidence, which is now at its highest level in two years.

ASB's quarterly investor confidence survey shows a net 14% of respondents expect a better return on their investment in the coming year, an improvement on last quarter, when a net 11% expected returns to worsen.

The bank's chief economist, Nick Tuffley, says that it's the largest change in quarterly confidence in the survey's 11-year history, but that a great deal of uncertainty remains.

Mr Tuffley says the survey captures the mood of investors at a crossroads: while they believe things will get better, there is no consensus as to where the best future returns will be achieved.

Rental property remained marginally ahead of bank savings as the most popular form of investment, but its appeal has tracked down in the last three months.

Bank savings, at 15%, remain the second most popular investment.