More good news

Things are aligning nicely for the government at the moment.

First the surplus is bigger than expected heralding calls for tax cuts, then the latest consumer confidence survey has shown improvement as well.

New Zealand consumer confidence rose in October as rising house prices and a strong labour market keep people upbeat, further supporting economic growth.

The ANZ-Roy Morgan consumer confidence index increased to 122.9 last month from 121 in September, with people more optimistic about the country’s outlook.

The current conditions index slipped 1.4 points to 122.7, while the future conditions index gained 4.1 points to 123.1. ?

New Zealand’s economy has been underpinned by an expanding population, strong tourism, and a buoyant property market stoking consumer spending, while the labour market has remained robust with new jobs being created for the inflow of migrants.

GDP (gross domestic product) growth is accelerating and the unemployment rate has fallen to 5.1 per cent as good candidates become harder to find,” ANZ chief economist Cameron Bagrie said.

“House prices remain a strong platform for homeowners and dairy prices have crossed the floor. No wonder consumers are electing to be liberal with their spending.

ANZ’s composite confidence gauge, which combines the business and consumer indicators, estimate annual GDP growth rising to 4 per cent through the rest of the year, though Bagrie said a lack of capacity seems a more likely hindrance than dwindling demand.

“We expect wage growth to start to move higher soon, which would be another positive for consumers,” he said. “There is little debate: people are feeling pretty good.”

And when people feel good they don’t change governments.

An opposition trash talking NZ isn’t going to work.

 

– NZ Newswire

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