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ANZ Consumer Confidence: Sweet as

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Contributor:
Fuseworks Media
Fuseworks Media

Consumer confidence was pretty steady in February.

The ANZ-Roy Morgan Consumer Confidence Index fell 1 point to 121, around its historical average.

The Current Conditions Index lifted 2 points to 126, while the Future Conditions Index eased 3 points to 117.

"Consumers are feeling relatively serene. There is perhaps a touch of wariness regarding the overall economic outlook. The lift in the proportion thinking it is a good time to buy a major household item to healthy levels suggests that small declines in Auckland house prices are not having much impact on willingness to spend," said ANZ Senior Economist Liz Kendall.

Turning to the detail:

- Consumers’ perceptions of their current financial situation lifted 2 points to a net 14% feeling financially better off than a year ago.

- A net 27% of consumers expect to be better off financially this time next year, down 2 points.

- A net 39% think it’s a good time to buy a major household item, up 3 points.

- Perceptions regarding the next year’s economic outlook fell 3 points to a net 9% expecting conditions to improve. The five-year outlook dropped 5 points to +15%.

- Canterbury lifted the most (up 8 points to 123) but the rest of the South Island pipped it as the most confident region at 126.

- House price inflation expectations were unchanged at 2.7%. They remain weakest in Auckland (1.9%).

- Inflation expectations fell 0.1%pts to 3.4%.

"Our composite gauge for business and consumer confidence continues to suggest momentum in the economy has slowed considerably, but the composite has stopped declining. We see economic growth averaging around 2½% over the next couple of years, with already-high household debt and declining (but still positive) population growth limiting consumption’s contribution."

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