1 Feb 2019

Consumer confidence off to a positive start in 2019

3:24 pm on 1 February 2019

Consumers are feeling good about themselves, despite lingering concerns about the economy.

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Photo: Supplied

The ANZ-Roy Morgan consumer confidence survey points to a positive start to the year, with January's confidence index holding steady with December's more upbeat vibe - steady at 122.

The current conditions index was unchanged at 124, while the future conditions index eased 1 point to 120.

"Consumers are feeling pretty good about things, with some concerns about the overall economic outlook but slightly above-average confidence regarding their own situations," said ANZ chief economist Sharon Zollner.

"The proportion thinking it is a good time to buy a major household item remains consistent with ongoing spending, though the data on retail spending growth will be affected by slowing population growth."

However, consumers were more pessimistic about next year's economic outlook, with fewer expecting conditions to improve.

Ms Zollner said recent consumer and business confidence surveys indicated momentum in the economy had slowed markedly.

"We see growth of around 2.5 percent for the next couple of years, with consumption supported by the strong labour market but capped by weaker population growth, high household debt and a flat-to-weaker Auckland housing market," she said.

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