New Zealand: Consumer confidence rises in April
May 10, 2021
The ANZ-Roy Morgan consumer confidence indicator rose to 115.4 in April from March’s 110.8, logging the best reading since February 2020. Therefore, it moved further above the 100-threshold that separates optimism from pessimism among consumers.
Consumers’ one-year general economic outlook improved considerably, and households’ assessments of their financial situation compared to one year ago also strengthened markedly. Moreover, the net proportion of households thinking it was a good time to buy major household items grew.
Commenting on the release, Sharon Zollnern analyst at ANZ, stated:
“Meanwhile, households are expecting a lot more inflation. […] Higher household inflation expectations make it easier for retailers to raise prices without fear of losing market share. And if the labour market is tight, higher household inflation expectations can also impact wage demands. Wage inflation is the type of persistent inflation that it is harder for the Reserve Bank to ignore, compared to cost inflation caused by temporary shortages of goods.”