Aucklanders’ positive view of the region’s economic outlook remains undented according to the December Westpac McDermott Miller regional economic confidence survey.
A net 21 per cent of households believe the region’s economic fortunes will improve over the coming year, up from a net 13 per cent in September. This continues a long run of positivity seen in Auckland that started in December 2012.
“Strong house price growth has fuelled a significant wealth effect in Auckland over the last couple of years,” said Westpac industry economist David Norman.
“Retail sales were up around eight per cent in the September quarter, for instance. While house price growth has now slowed, we’re still seeing a lot of positive signs in the region. Residential construction is booming, and scope for a lot more growth exists. Several new commercial developments are planned downtown, and job advertisements remain strong. Auckland, as an urban centre, has also been more insulated from the commodity price weakness seen elsewhere in NZ.”
Separately, the Westpac McDermott Miller survey also examines consumer confidence, producing an index that summarises responses to questions including how respondents view their own financial situation, and their current willingness to buy a major household item.
The regional breakdown of the Westpac McDermott Miller consumer confidence index showed Auckland consumer confidence remains above the national average, up 2.5 points to 113.9 in December. This compares to a national average of 110.7, which was up 4.7 points.
“Auckland consumers remain positive about their own personal position looking forward,” said Norman. “A net 29 per cent of Auckland households see this as a good time to purchase a big ticket household item, and a net 14 per cent are expecting the next 12 months to be better than today economically speaking. This is quite a turnaround from the September reading. Aucklanders clearly believe that, overall, the economic future is looking good for them personally.”
The survey was conducted over the period December 1 to 11, 2015.
