18 May 2017

Consumer sentiment continues to rise

4:25 pm on 18 May 2017

Consumer sentiment has risen to the highest level since the global financial crisis, boosted by strong employment opportunities, low inflation and the potential for tax cuts.

23062016 Photo: RNZ / Rebekah Parsons-King. Busy streets in Wellington.

Photo: RNZ / Rebekah Parsons-King

The ANZ - Roy Morgan Consumer Confidence Index rose to 123.9 in May, compared with 121.7 in April.

"It adds up to business as usual," ANZ Bank chief economist Cameron Bagrie said.

The survey showed a net 16 percent of the 1000 consumers surveyed feel better-off financially, compared with a year ago, and up from last month's net 9 percent.

Mr Bagrie said the survey pointed to good times ahead, despite some risks.

"There are risks, as always: with headline inflation popping higher real wage growth is currently negative. Retail mortgage rates are rising as banks scramble for deposits, although this is benefiting savers. And the property market remains vulnerable to a turn for the worse," he said.

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