The cooling the housing market and election uncertainties have failed to dent consumer optimism, ANZ-Roy Morgan Research’s latest index shows
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The ANZ-Roy Morgan Consumer Confidence has lifted to129.9 from 126.2, hitting a three-year high in September.
When adjusted for seasonality, the index rose by 2 points, an increase of more than 15 points after its recent low in April.
“Nothing appears able to clip consumers’ wings at present,” ANZ senior economist Phil Borkin said. “Consumers feel wealthier.”
According to the findings, 19% of the respondents feel financially better off than a year ago, the highest level since 2007.
A net 36% of consumers said it is a good time to buy a major household item, Borkin said. “History would suggest the weaker housing market will dent big-ticket spending, but there is little sign of that yet.”
Confidence rose in Auckland, Canterbury, and regional North Island, was steady in Wellington, and dipped in regional South Island.
“A softer housing market has typically presaged a reduction in consumers’ appetite to spend. Together with the uncertainty over who will be Prime Minister next week, one could have been forgiven for thinking that consumers would be in a slightly more cautious mood at present.
“However, that is not the case,” Borkin said. “The seat belt sign remains off and the hot beverage cart is doing the rounds. That fact that sentiment is not only elevated, but rising, is quite a healthy sign.”
When adjusted for seasonality, the index rose by 2 points, an increase of more than 15 points after its recent low in April.
“Nothing appears able to clip consumers’ wings at present,” ANZ senior economist Phil Borkin said. “Consumers feel wealthier.”
According to the findings, 19% of the respondents feel financially better off than a year ago, the highest level since 2007.
A net 36% of consumers said it is a good time to buy a major household item, Borkin said. “History would suggest the weaker housing market will dent big-ticket spending, but there is little sign of that yet.”
Confidence rose in Auckland, Canterbury, and regional North Island, was steady in Wellington, and dipped in regional South Island.
“A softer housing market has typically presaged a reduction in consumers’ appetite to spend. Together with the uncertainty over who will be Prime Minister next week, one could have been forgiven for thinking that consumers would be in a slightly more cautious mood at present.
“However, that is not the case,” Borkin said. “The seat belt sign remains off and the hot beverage cart is doing the rounds. That fact that sentiment is not only elevated, but rising, is quite a healthy sign.”
