-Steve Edwards, economist at ANZ Bank New Zealand
Consumer confidence in New Zealand increased for a second consecutive month in January reaching the highest level in six months, as households become more optimistic about the future prospects amid cheaper petrol prices, which provide more spending power to consumers. The ANZ-Roy Morgan consumer confidence index climbed by 1.9% to 128.9 in January, up from 126.5 a month earlier, with a figure above the 100-mark threshold indicating optimism among consumers outweigh pessimism. The current conditions index rose 0.7 of a point to 126.8, while the future conditions index soared to 130.3 from 126.8 in January.
Meanwhile, a separate gauge assessing performance of the nation's manufacturing sector indicated a continuous expansion in New Zealand's manufacturing activity. The Business NZ Manufacturing Index jumped to 57.7 in December from 55.2 in the previous month, where a figure above 50 indicates an expansion in activity, while a figure below 50 points to contraction. The index shows that the manufacturing sector has been growing for more than two years, with the last sub-50 reading in November 2012. New Zealand's labour market also continues to strengthen as robust economic growth increases the need for hiring new workers. The ANZ Job Advertising Series rose 0.8% in December after falling 0.1% in the preceding month.
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