Consumer confidence has fallen, according to the monthly ANZ-Roy Morgan Consumer Confidence survey, dropping to 105.8 in June from 113.9 in May, with confidence deteriorating in all five areas surveyed.
ANZ and Roy Morgan said there were three key "take outs" from the survey.
"First, while the knock-back is unwelcome, consumer confidence remains above 100 on all three measures (total, current and future conditions). Second, restrained levels tell us that consumers are still cautious: the
consumer is not going to be the flag-bearer of growth. Third, the gap between future and current conditions is the narrowest we’ve seen since 2008. The closure has unfortunately come from receding optimism towards future conditions. This portends a 'knuckling down” dynamic'."
ANZ and Roy Morgan said the decline in confidence was more pronounced among female respondents than males, dropping 10 and 6 points, respectively. And there was a significant drop in confidence among people aged 25 and older.
"The largest drop in optimism was noted in the 35-49 age cohort, down 13 points to a 14-month low of 100.1. Those aged 50 years or older recorded the lowest level of confidence, down 9 points to 94.8. Confidence for those aged between 25 and 34 years of age dropped 10 points to 113.1. Double-digit declines in the future component was noted across all three age cohorts aged 25 or older."
Meanwhile, confidence also fell across all five regions surveyed, led by Canterbury where confidence dropped 14 points to 106.1. Wellington recorded the second biggest fall, down 13 points to 105.7, while Auckland recorded the smallest decline, down 2 points to 109.8.
A total of 1,040 people were surveyed.
13 Comments
Hmm .. let's see: my job is less safe now, my house value is not increasing, my investments return little, my future universal Super is under attack, my debt is not going away fast enough, ....
But then again, interest rates are far lower = less debt repayments.
Is my "confidence" in the ups & downs of fear-driven economic events & conditions?
It is not 'consumer confidence' that has been falling...it is simply a fact that the vast majority of peasants have no confidence in govt or their economic management.
Saving and investing as a peasant activity are dead...most earn too little...those with enough to do so are aware of the debasement (inflation) and tax theft and banking risk....they prefer to stash the cash where it can be grabbed at a moments notice..and they will spend but only when prices are slashed...NOTE that please..
They will spend when prices are slashed.... but we have property as number one investment in NZ...ask any polly....yet property prices are bloated thanks to govt and RBNZ policies...(that's what the low OCR is all about)...they are worse so in Auckland thanks to the influx of hot cash from China.
So the cash is flooding into the banks for short terms but earns stuff all...in fact when debasement and tax are factored in the capital goes down...The banks want to create and flog credit but the peasants are not wanting mortgages any more...all that's happening is a mortgage merry go round...
Conclusion: Property prices are bloated due to govt and cheap finance..new borrowing is dying away..the well off are hoarding cash and losing capital value..sales dominate the shops..tax theft(govt revenue) continues to fall..the deficit continues to expand..further downgrades are coming..chch will not be the recovery machine..Govt expenditure(mostly pork)will be reduced and this will lead to less activity...less spending...more stashing of the cash at a loss..Pretty well every sector nook and cranny in the economy is or will soon be heading down the slope.
At the bottom will come the following:
"In Europe's most economically stricken countries, people are taking their money out of their banks as a way to protect their savings from the growing financial storm"
http://abcnews.go.com/Business/wireStory/greek-spanish-savings-flee-eurozone-crisis-16585682
Go ya Wolly. We are already way past 10% towards your prediction. For the very first time - you are wrong!
All around I witness friends, aquaintances and neighbours all heading down towards serfdom. The middle class are vanishing at an astounding rate - not tomorrow - right now - today.
I stick with my 120% prediction.
Hmmmm.....maybe there is no escape...is that what Tweak and Fiddle have finally realised...or did they know from day one but went with the BS policy!
The funny thing is the parasitic banks have killed off the host....the demise of the middle class means the end of a market for their credit drugs.
I shall pick up the bargains as I need them...grow me own and make beer, spirits and wine. Plenty of wild deer in the bush here and porkers too.
They buy up the utilities and the food factories - then they crank up the prices. Just like when you played Monopoly - the UTILITIES were the best to own.
Fuedalism - that is what the historians will call my framed image of your post - in 50 years time - you will be famous.
According to the ANZ-Roy-Maudlin poll , only the age chort 50 years & older are under 100 % confidence level ...... but the majority of the population are under 50 but well over 100 ..... if you get my drift ( stay upwind ! ) ......
..... so , all's goody-good in Godzone ! ...... confidence levels above 100 ..... happy days ...
Can't fathom why the gang here are reacting as if they've got katipo spiders in their underpants ....
I have obtained three art-work frames and named them FAITH, HOPE & CHARITY.
Wolly's post will be FAITH.
The Gumsters will be HOPE
And the next IRD report on our most recent tax-take will be CHARITY.
Colin McCann - your art is about to be eclipsed!
In the meantime - look at this for a 'hot' deal
Amazing midweek deal!!! From Monday 18th June, purchase 1 day pass and ski EVERY day through to Friday 22nd June for free! Passes available from Guest Services on the mountain or our Snow Centre in Methven.
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