New Zealand consumer confidence surged to its highest level in three years in June, buoyed by improving economic prospects, rising house values, low interest rates and falling prices, according to the latest Westpac McDermott-Miller Consumer Confidence survey.
The index jumped to 116.6 in the June quarter, up from 110.8 in March and the highest level since June 2010 when it touched 119.3. The survey of 1,568 households took place June 1 to 10. A reading above 100 indicates more optimists than pessimists.
It's hardly surprising that people are feeling more optimistic about the economy. The economy is growing, and is forecast to continue to grow. GDP growth figures are due out later this week, and growth for the March quarter is expected to be around 0.6% for the quarter. Unemployment is falling, interest rates remain low (but for how long?), and the NZ$ has started to trend down against the US$ as the US economy starts to recover slowly.
Farmers are feeling bouyant too, even after a summer drought; the Herald also reports on Fieldays from last week:
Fieldays, New Zealand's largest agricultural fair, finished yesterday with 125,127 visitors attending the four-day event at Mystery Creek in the Waikato.
National Fieldays chief executive Jon Calder said the 28,000-plus people who who visited yesterday had, he believed, contributed to record sales.
"The positivity evident across our exhibitors and visitors sends a strong signal that there is confidence and a buoyant mood across our agricultural and primary sector."
When the farmers are spending, the towns and cities around them feel the benefit. That gives employers the confidence to take on new staff and invest in growing their businesses.
2013 has been anything but unlucky for the John Key-led Government on the economic front. The steady-as-she-goes policies presided over by Bill English have proved to be the right treatment for economic malaise brought on by a global economic downturn.
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