Consumer confidence is lifted – but by what?

April 25, 2009

Looks like Alf’s optimism is rubbing off. Or maybe each respondent to a survey feared being biffed into a tumbrel and hauled off to the stocks if they expressed pessimistic views.

Whatever the reason,

New Zealanders are more optimistic about the next five years than at any time since October 2007, according to a just-issued consumer confidence poll.

The Roy Morgan Consumer Confidence Rating polled 1060 people this month about the economic outlook. The rating is up 4.6 points on the 100 it was at in mid April 2008.

Spokesman Gary Morgan said the April rating was up strongly. “It is the first time since October 2007 …. that New Zealanders are more confident than they were a year ago.”

A total of 55%, which is 7% up on the previous year, and the highest since surveying began in 2004, expect ‘good times’ in the next five years.

While 53% expect times to be tough for the next 12 months, 27% see a better 12 months.

In a year, 51% expect their family to be better off, compared to 18% who expect to be worse off.

It might be a case of folk believing things can only improve from here.

Looking back over the past year, 40% said their family was financially worse off than a year ago, while just 25% said they were better off.

But Alf would like to think people have confidence in the Key Government, and are more influenced by John’s cheery outlook than the gloomier view expressed by his deputy and minister of finance, Bill English, as he conditions us to accept the breaking of the tax-cuts promise.