"People are shifting out of saving mode and into spending mode"
- Dominick Stephens, Westpac Chief Economist
New Zealand consumer confidence rose to the highest level in three years in June, driven by improving economic prospects, increasing housing values, low interest rates and falling prices. The Westpac Consumer Confidence Index came in at 116.6 in the April-June period, marking the highest score for the index since the Q2 of 2010, when it touched 119.3. The index increased from 110.8 in the previous three-month period. A reading above 100 indicates more optimism than pessimism.
The consumer confidence survey indicated that the number of people, who would rather spend than save, is the highest since 2004. In addition to that the survey also showed that a net 10.1% expect their finances to improve compared to 7.2% in the previous data release. A net 35.4% foresee their long-term economic prospects to improve, up from 32.1%. However, households' assessment of their current financial situation declined to –10.8 from –10.4.
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