Consumer confidence hits 18 month high

Consumer confidence as measured by the Westpac McDermott Miller survey shot to an 18 month high in the June quarter.

The Westpac McDermott Miller consumer confidence index rose to 106 in June from 96 in March. It is well above the low of 81.7 reached last June.

An index number below 100 indicates more pessimists than optimists, while a number above 100 indicates that optimists outnumber pessimists.

"This puts confidence at an 18 month high, and well above the low reached in June last year," Westpac senior economist Donna Purdue said.

"The lift in confidence this quarter appears to be a reaction not so much to what has happened, but to what hasn't," she said.

Consumers heaved a collective sigh of relief. In March a "fear factor" about the economic outlook had been huge. But three months on global economic news had improved, she said.

The risk of a depression-like scenario had greatly diminished.

"Here in New Zealand, people are still losing their jobs and house prices are still lower than a year ago, but the situation is not as bad as some disaster scenarios that were touted," said Purdue.

The survey was conducted between June 2 and June 16 and comes out ahead of March quarter gross domestic product data due on Friday.

- NZPA