New Zealand consumer confidence eased in February, although remained above average, with more consumers feeling better off personally than they did a year earlier.
The ANZ-Roy Morgan consumer confidence index decreased to 127.4 last month from 128.7 in January, but was up on a seasonally adjusted basis. The current conditions index slipped 2 points to 128, while the future conditions index dropped 1 point to 127.
New Zealand's economy has been underpinned by an expanding population, strong tourism, and a buoyant property market stoking consumer spending, while the labour market has remained robust with new jobs being created for the inflow of migrants.
"The economic landscape looks pretty radiant for consumers," ANZ Bank New Zealand chief economist Cameron Bagrie said in a note. "A high NZD is keeping imported products cheap. Wage gains might be modest but income growth is still up 4.8 per cent on a year ago, courtesy of strong employment growth.
"Household (and consumer) wealth/balance sheets have been given a huge fillip courtesy of house price gains (though slowing of late). Dairy sector incomes are on the recovery path. Interest rates have risen from their lows, potentially denting borrowers' disposable income, but it's supporting depositors and savers, a group often forgotten about."
