New Zealand confidence drops.
by MEDIA CONTACT RESOURCES, INC.
Consumer confidence in New Zealand sank 4.9 points in a late
February 2007 early March 2007 survey. The mid-February 2007 confidence
reading was 133.7. The mid-March 207 reading was 128.8, which was 3.5
points higher than the same period in 2006.
Consumer confidence in New Zealand is measured monthly by Roy
Morgan International (Melbourne, VIC Australia), and the survey data and
analysis is dated March 14, 2007. The survey was conducted by telephone
with a random sample of 1,080 New Zealanders over the age of 14.
New Zealanders were more pessimistic about the next 12 months in
the current survey. The survey analysis said, "Now less than half
(48%, down 2%) of New Zealanders expect good times financially over the
next 12 months compared to 28% (up 5%) who think there will be bad
times."
The Morgan firm attributed the drop in confidence to interest rate
hikes. A principal of the firm was quoted as saying, "As many
economists predicted, Reserve Bank Governor Dr. Alan Bollard raised
interest rates by 0.25% to 7.5% on March 8, [2007]-the first change in
rates since December 2005. As a result of this, the Roy Morgan Consumer
Confidence [index] will most likely fall further in the
short-term."
In other survey findings, 55 percent of sample respondents said
they thought their own families' financial situation would be
better at this time in 2008, and 15 percent of respondents said they
were expecting to be worse off. The optimistic reading was down 1.0
point, and the pessimistic reading was up 2.0 points compared with
mid-February 2007.
When asked about their present financial situation, 40 percent of
survey participants (down 4.0 percent) said they were better off
financially now than they were in 2006 in the same period, and 26
percent said they were worse off (up 4.0 percent).
Importantly, 63 percent of New Zealanders surveyed said that now
was a good time to buy durables. This reading was down only 1.0 percent
from February 2007. And 19 percent of respondents said it was a bad time
to buy durables (up 3.0 percent.)
MARKET FOCUS:
COPYRIGHT 2007 Media Contact Resources,
Inc. Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2007, Gale Group. All rights
reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.