NZ: Consumer sentiment continues to march along at a steady pace - ANZ

Cameron Bagrie, Chief Economist at ANZ, points out that New Zealand’s consumer confidence is marching along at a steady pace, tracking above average.

Key Quotes

“The ANZ-Roy Morgan Consumer Confidence Index eased from 127.4 to 125.2 in March (average 118). Once we adjust for the usual seasonal pattern, consumer confidence eased from 125.3 to 123.9. That’s a blip.”

“The Current and Future Conditions Indexes both eased 2 points from elevated readings. At 126.0 and 125.0 respectively, the levels for both indexes remain historically high. In terms of the details:

• Indicators for near-term spending suggest retailers should be able to drum up business. A net 13% feel better off financially compared with a year ago, around the average for the past six months. Consumer enthusiasm for buying major household items eased from +41 to +38 – this measure has been oscillating around the 40 mark for three years. 
• Forward-looking indicators marked time. Net optimism towards the economy one year out eased from +26 to +21. However, respondents’ views towards their own financial situation in 12 months’ time lifted a touch to a net +32%.
• Solid consumer confidence readings are in step across all regions. Auckland is the most optimistic region, followed by the South Island excluding Canterbury.”