New Zealand’s consumer confidence rebounded in June on support from strong household sentiments amid an improving labor market and strong growth in housing prices. Also, appreciation in the New Zealand dollar improved sentiments that led to a rise in the confidence index.
The ANZ-Roy Morgan consumer confidence index rose to 118.9 from 116 in May. The current conditions index gained four points to 122.7, while the future conditions index advanced two points to 116.4. The survey showed a net 10 percent of the 1,000 respondents said they were better off now than they were a year earlier, up from 5 percent in May and the highest in more than a year. A net 36 percent of respondents believe it is a good time to buy a major household item, up two points from May.
“The New Zealand economy is chugging along pretty well, despite clear strains in the dairy sector and the unease offshore,” said Cameron Bagrie, Chief Economist, ANZ Bank, New Zealand.
Moreover, respondents expect further rise in economic conditions in the future with a net 9 percent anticipating good times financially for the country over the next 12 months, up from a net 6 percent a month earlier, while a net 16 percent anticipated continuous good times over the next five years, compared to a net 13 percent in May.
With offshore risks looming over the country’s economic and financial stability, New Zealand’s fortune seems volatile, with the Brexit referendum in course of next week and mounting global debt storming stability of all nations.
Consumers predicted an annual rate of inflation of 3.8 percent over the next two years, up from 3.3 percent, and a 6 percent rise in house prices in the same time, from 5.8 percent a month earlier. Meanwhile, on a regional basis, Auckland recorded the largest lift in consumer. However, Wellington confidence fell from high levels, but still remained at the second place.
The material has been provided by InstaForex Company – www.instaforex.com