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Summer chart series: The close connection between house prices and consumer spending

Posted in News

Bernard Hickey picks out 10 charts from 2009 in a series of videos to play over the Summer break. In this video he looks at the close connection in the past between house prices and consumer spending in New Zealand as home owners felt confident about spending as house prices rose. The Reserve Bank believes consumer spending is unlikely to rebound quickly through 2010, despite a 12% rise in house prices forecast in the year to March 2010. Rodney Dickens challenges the Reserve Bank's views as wishful thinking in this piece here.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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