17 Jun 2016

Consumers 'feeling warm' on economy

4:29 pm on 17 June 2016

Consumers appear to be singing a happier tune, according to a recent poll.

The ANZ-Roy Morgan Consumer Confidence Index has risen 3 points to 118.9, after a fall in May (PDF, 185KB).

Overall, the survey's respondents said they felt better off financially and thought it was a good time to buy a major item for the home, as house price expectations gained momentum.

ANZ Bank chief economist Cameron Bagrie said the New Zealand economy was ticking over pretty well, despite dairy sector strain.

"The bounce in sentiment in June suggests consumers have kept the germs at bay."

"We've stocked up on the vitamin C, stoked the fire, put on some woolly socks and are now feeling toasty and warm," he said.

There were overseas risks, including high levels of debt globally, Mr Bagrie said.

"But a reasonable level of confidence is an important part of absorbing and dealing with those risks."

"Momentum and confidence can breed more momentum and confidence... it is reflected in our confidence composite, which continues to flag a solid-to-strong pace of growth over the coming months," he added.