18 Jun 2010

Pre-GST consumer spend-up doubted

5:44 pm on 18 June 2010

A bank survey has found many people think it's a good time to buy big ticket items, but a business group doubts whether that signals a spend-up to beat a forthcoming rise in GST.

The ANZ consumer confidence survey says spending intentions are up, even though more people say they don't expect to be financially better off over the next year.

The bank suspects that the pending rise of 2.5% in the Goods and Services Tax to 15% on 1 October may have skewed the data.

However, the Northern Employers & Manufacturers Association doubts there will be any rush to beat the increase in GST.

It says the tax rise won't push up prices significantly.