ANZ-Roy Morgan NZ consumer confidence eased in May

Data released earlier today showed ANZ-Roy Morgan consumer confidence index declined to 116.2 from 120 in April. The current conditions index fell by 4 points to 119.3, while the future conditions index decreased by 3 points to 114.3.

Details showed that a net 5% consumersfeel better off compared to a year ago. A net 34% believe it is a good time to buy a major household item. Net optimism regarding the short-term economic outlook eased from +9 to +6. Optimism about the longer-term outlook was down from +28 to +23. The Current Conditions and Future Conditions indices fell by 4 points and 3 points to 119.3 and 114.3 respectively.

"While moving at a marginally slower tempo, New Zealand consumers are still in a good rhythm," ANZ Bank New Zealand chief economist Cameron Bagrie said in his report. "We are left with an impression of consumers in a good mood."

However the positive sentiment was being tempered by rising petrol prices and rising tensions over an accelerating property market which hampered first-home buyers and lower interest rates which impacted savers.

"Our Confidence Composite (which combines both consumer and business sentiment) continues to flag that good times remain ahead. It is suggesting GDP growth of around 3% for 2016." said ANZ in a report.