HomeNEWSCashing up: retail spending strong, consumer confidence up

Cashing up: retail spending strong, consumer confidence up

Marketview says retail spending was up 3.8 percent this week, with sports and camping equipment the best performing retail category. Spending on it rose 16.6 percent.

This was followed by takeaways, up 7.7 percent, and travel agents, up 6.2 percent.

Population growth was also on the up and up, with 15 out of 16 regions across New Zealand experiencing it. Auckland’s growth was the strongest, at 2.9 percent.

New Zealand’s consumer confidence also rose for the second month in a row after a three-year-low in August.

“Consumer confidence changed key this month and is hitting a slightly higher note,” ANZ Bank New Zealand senior economist Philip Borkin said in the ANZ-Roy Morgan report.

“A few months back the economy was off key and losing fans. Sentiment had fallen sharply and threatened to keep falling. This rebound is encouraging. Stability in the view on current conditions is important – how consumers are feeling here and now affects spending decisions.”

Kiwis feeling more positive about the economy has been attributed to dairy prices recovering and homeowners benefiting from low mortgage rates.

Confidence improved in all regions. The Canterbury area had the highest confidence reading, followed by Auckland. Wellington was the least optimistic.

As well as this, 31 percent of respondents said it’s a good time buy a major appliance, up from 24 percent in September.

Though there’s lots of positive indicators, Borkin says people still need to err on the side of caution.

“Unemployment is rising again, dairy incomes are still tight and the global backdrop is concerning,” he says.

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