In good news for the retail vehicle industry, consumer confidence has risen to a 32-month high – and looks set to rise further by mid-year.
Headline consumer confidence rose 2.7 points to 121 in February, with four of the five sub-components rising.
Meanwhile the future conditions index rose 6 points to 125, while current conditions eased 2 points to 115.
After accounting for seasonality, overall consumer confidence firmed 7 points to 119, also a 32-month high. Seasonally adjusted, both current and future conditions lifted, to 114 and 124 respectively.
The regional splits showed widespread improvement, with confidence higher in the South Island. Wellington remains the regional laggard.
ANZ-Roy Morgan’s confidence composite growth indicator – which combines consumer confidence (current conditions) with the composite measure of business confidence from the ANZ Business Outlook survey – is showing 2.6% growth by mid-year
Consumers feel less worse off financially than a year earlier (-2 versus -5). They are more positive regarding their own financial prospects in the year ahead (+35 from +29). Views on the general economy a year out are better (+12 from +8) as is sentiment towards the economy five years out (+29 from +21). It’s still viewed to be a good time to buy a major household item, but at +32 this net balance is below the +38 read in January.
Confidence usually falls in February as the reality of the working week reasserts itself. However, after accounting for seasonality, this February showed a 7 point climb in overall confidence to a 32-month high.
