New Zealand consumer confidence improves in October on strong economic outlook

Consumer confidence in New Zealand improved during the month of October, as rising house prices and a strong labour market keep people upbeat, further supporting economic growth.

The ANZ-Roy Morgan consumer confidence index increased to 122.9 last month from 121 in September, with people more optimistic about the country's outlook. The current conditions index slipped 1.4 points to 122.7, while the future conditions index gained 4.1 points to 123.1.

A net 11 percent of the 1,001 people surveyed said they were better off now than a year ago, unchanged from September, while a net 30 percent expect to be in a stronger financial position 12 months from now, compared to 31 percent a month ago.

More people see the economy improving with a net 21 percent predicting better times for the nation over the coming 12 months, compared to 12 percent in September, and 18 percent have an upbeat five-year outlook, up from 14 percent.

Households were still optimistic about spending with a net 35 percent saying now was a good time to buy a big-ticket item, down from 38 percent in September, and annual inflation expectations eased to 3.1 percent from 3.6 percent. Respondents also scaled back their outlook on house price inflation to an annual 5.7 percent pace over the next two years from 6.3 percent in September.

"GDP (gross domestic product) growth is accelerating and the unemployment rate has fallen to 5.1 percent as good candidates become harder to find," said Cameron Bagrie, Chief Economist, ANZ Bank, New Zealand, in a note.