New Zealand confidence drops.

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.)

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