New Zealand’s consumer sentiment index came in slightly higher in April. The ANZ-Roy Morgan Consumer confidence index rose 1 point to 123, close to its historical average. Better perceptions of the current situation led to the rise of the headline index, with the current conditions index rising 5 points to 130, the highest level since the beginning of 2018. In the meantime, the Future Conditions Index dropped 1 point to 119.
Delving into details, consumers’ perceptions of their current financial situation rose 2 points to a net 14 percent feeling financially better off than one year ago. A net 30 percent of consumers expect to be better off financially this time next year, rising 1 point. A net 46 percent think it is a good time to purchase a major household item, up 8 points. Perceptions about the next year’s economic outlook dropped one point to a net 9 percent expecting conditions to rebound. The five-year outlook dropped 3 points to 18 percent.
Region wise, the South Island outperformed, with Canterbury recording a rise of 5 points to 126 and the rest of the South Island recording a rise of 10 points to 125. Auckland saw the index at 124. House price inflation expectations rose to 2.8 percent, owing to higher expectations outside of Canterbury and Auckland. Inflation expectations rose 0.3 percentage points to 4 percent.
Consumer sentiment in New Zealand continues to be strong, holding onto a recovery from the lows of late-2018. The overall index continues to be around its historical average, defying housing market weakness and global and domestic growth risks.
“Our confidence composite gauge combines business expectations and intentions with overall consumer sentiment to capture both the demand and supply side of the economy and give a better indicator for growth than either series alone. It continues to suggest that momentum in the economy has slowed considerably, but the composite has stabilised and even started to lift off its lows. The recent pickup reflects the lift in consumer confidence regarding current conditions. The composite gauge is consistent with our GDP growth outlook: subdued in the near term (falling to 2 percent this year), before gradually building towards 3 percent over the next few years”, stated ANZ.
At 12:00 GMT the FxWirePro's Hourly Strength Index of New Zealand Dollar was highly bullish at 150.534 while the FxWirePro's Hourly Strength Index of US Dollar was bullish at 78.04 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
