The New Zealand consumer confidence index reached 101 in Q3 2016 – the highest score since Q1 2015. The index represents a five point increase from Q2 2016 and a seven point increase from a year ago (Q3 2015).
In the latest online survey, conducted August 10 - September 2, 2016, the three key drivers of New Zealand’s confidence all increased from the previous quarter.
Immediate spending intentions of Kiwis has increased, rising from a 39% from Q2 2016 to a high of 48% in the third quarter of 2016. A nine percentage point increase of those planning to open their wallets for things they want and need.
Positive perceptions about local job prospects over the next 12 months increased in the third quarter of the year. Over half of New Zealand respondents (54%) believed the job market would be good or excellent in the upcoming year, a quarterly increase of 8 percentage points.
More than half (57%) of New Zealand respondents regarded their personal finances positively, an increase of two percentage points from the previous quarter - a level that has been reasonable steady for three consecutive quarters.
Nick Tuffley, ASB Bank’s Chief Economist, said, “The New Zealand economy has been sustaining good momentum over the past year, translating into improved job opportunities. Improved rural conditions will be playing a part in the more positive outlook. Dairy prices began recovering substantially over the survey period. Meanwhile, fruit exports have performed well, particularly kiwifruit, and tourism is boosting growth around the country. Consumer inflation is low and interest rates are set to remain very low for a long time, conditions that are clearly encouraging stronger retail spending.”
The mood of rural consumers has improved. Eight in 10 New Zealand farmers and growers expect the business climate to stay the same or improve over the next 12 months, according to Nielsen’s Rural Report 2016, with dairy farmers and horticulturalists being the most optimistic.
Increased optimism in the rural sector is set to translate into spend. After canvassing New Zealand farmers and growers spending intentions over the next year, we see that nearly a third of farmers and growers plan to invest in farm machinery and equipment (29%). Around a quarter are looking to spend on insurance (28%) and IT/Technology (24%). A fifth are looking at banking and finance products (21%), vehicles (19%) and infrastructure under $200,000 (17%).
For more detail and insight, download Nielsen’s Q3 2016 Global Consumer Confidence Report. If you would like more detailed country-level data from this survey, it is available for sale in the Nielsen Store.
ABOUT THE NIELSEN GLOBAL SURVEY OF CONSUMER CONFIDENCE AND SPENDING INTENTIONS
The second-quarter online survey was conducted Aug. 10–Sept. 2, 2016. The findings in this survey are based on an online methodology in 63 countries, including 500 New Zealanders. While an online survey methodology allows for tremendous scale and global reach, it provides a perspective only on the habits of existing internet users, not total populations. In developing markets where online penetration is still growing, audiences may be younger and more affluent than the general population of that country. Three sub-Saharan African countries (Ghana, Kenya and Nigeria) utilize a mobile survey methodology and are not included in the global or Middle East/Africa averages discussed throughout this report. In addition, survey responses are based on claimed behaviour, rather than actual metered data. Cultural differences in reporting sentiment are likely factors in the measurement of economic outlook across countries. The reported results do not attempt to control or correct for these differences; therefore, caution should be exercised when comparing across countries and regions, particularly across regional boundaries.
ABOUT THE NIELSEN RURAL REPORT 2016
The survey was conducted 19 July – August 24, 2016, and polled 1,500 beef, sheep, dairy, livestock, crop and horticulture farmers and growers in New Zealand. The data was then weighted to Statistics NZ by farm size and type to represent over 46,000 farms and orchards nationwide.