New Zealand: Consumer confidence, business sentiment increases in January
Christian Fernsby ▼ | February 6, 2023
The ANZ-Roy Morgan consumer confidence indicator rose to 83.4 in January from 73.8 in December, which had the lowest reading on record.Article continues below
Therefore, the index remained entrenched below the 100-threshold that separates optimism from pessimism among consumers.
In January, households’ expectations of their financial situation in one year view improved, as did their expectations over the general economic situations in five years view and their willingness to buy big-ticket items.
FocusEconomics panelists project private consumption to grow 0.0% in 2023. They see it expanding 2.1% in 2024.
The ANZ bank business outlook indicator rose in January. As a consequence, a net 52.0% of firms reported that they expect general business conditions to worsen in the year ahead, improving from a net 70.2% of firms expecting bleaker general business conditions in the year ahead in December. As a result, the headline remained entrenched below the net-0% threshold that separates pessimism from optimism among businesses.
Business grew less downbeat with regards to ease of credit, profit expectations and export and employment intentions. Moreover, expectations of capacity utilization improved.
Meanwhile, firms’ outlooks regarding their own activity a metric which has a stronger correlation to GDP growth rose to a net minus 15.8% in January from a net minus 25.6% in December.
FocusEconomics Consensus Forecast panelists project fixed investment to decrease 1.7% in 2023 and to increase 2.2% in 2024. ■ What to read next
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