Ten year low in consumer confidence
The Herald reports that the Westpac consumer confidence index has it a 10 year low at 96.5. The previous low was 94.2 in June 1998.
A net 19% of respondents say they are worse off than a year ago. Remember it was a year ago Dr Cullen cancelled the tax cuts he promised as people were not grateful enough for them.
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Tags: consumer confidence, Westpac
March 26th, 2008 at 7:19 am
Bad, bad news in election year. Add to that the average 7% increase in the cost of house rentals, and it’s not the kind of news that Labour want people to hear.
http://keepingstock.blogspot.com/2008/03/more-bad-news-for-government.html
March 26th, 2008 at 7:27 am
Looks like the dip is coming a year too early for Labour under Cullen/Clark. Oh dear. No one to blame but themselves.
March 26th, 2008 at 7:43 am
how about ‘bank-confidence’..?..eh..?
http://whoar.co.nz/2008/there-is-a-new-international-virusit-is-calledfear-of-lending/
(b.t.w..those getting ‘over-exuberent over that little ‘rise’/'recovery on wall st..
should know that is called ‘a dead-cat-bounce’..)
phil(whoar.co.nz)
March 26th, 2008 at 8:06 am
Meanwhile, when your power bill spikes this winter you can at least comfort yourself with the prospect of Mikey Sullen having a shiny train set to play with:
[Source: http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10500100 ]
March 26th, 2008 at 8:20 am
The interest on my mortgage is $100 a week more than it was last year.
March 26th, 2008 at 8:39 am
I suspect the response of cullen will be attached to “global factors” which are out of his control – much the same way the growth NZ has achieved over the last 9 years was out of his control as well.
March 26th, 2008 at 9:52 am
yes syoban but he claimed the good stuff was ‘prudent economic management’ didn’t he? Let them have cake… and eat it?
March 26th, 2008 at 10:24 am
“philu”, has it ever occurred to you that these “heh-heh-heh” moments at the impending collapse of filthy capitalism are the most likely harbinger of your precious welfare benefit being cancelled by a bankrupt government?
March 26th, 2008 at 10:27 am
Thanks for the tip phul. I’ll be sure to put my money where your mouth is and short wall st by an amount commensurate with the quality of your opinion.
March 26th, 2008 at 11:43 am
PhilBest, Philu is a turkey looking for a Christmas. Not sure what Philu does but usually the first to suffer in a down turn are the unemployed and the poor.
I note that Sullen said about two weeks ago the drought would cost NZ about 1 billion, this week he is saying that it will probably be 2.3 billion. I would say that if the final figure is only 2.3 billion then we are getting off lightly. The socialist grasshoppers are about to see what a long hot summer really means. As for tax cuts forget it, you have to take tax to cut it and Mr Sullens piggy bank is shrinking.
March 26th, 2008 at 12:14 pm
I thought cullen followed keynesian economic theory – so don’t we see some return from all that was taken during the good times, now that we are headed into bad times.
Or is my economic understanding as good a cullens – zilch. Don’t worry, it won’t hurt my feelings if I’m completely off base.
March 26th, 2008 at 1:38 pm
What does “Poor Prick” know about economic theory. He was not a very good history teacher I am told.
I would rather listen to someone who had “proper” job experience than one who has done nothing but sup off the public tax tit all his life.
March 26th, 2008 at 2:06 pm
Its very hard not to gloat at the impending demise of Cullen and Clark but then they have bought it on themselves. Yes they might try the old Dolly did it as regards blaming international forces but the citizens are in no mood to tolerate excuses especially from these 2 who have held themselves out to be God gift for 9 years.
Watchy as they sink under the 30 point mark at the next poll with JK and the Nats hitting 55 points. Greens hovering around point of destruction Luigi under it. It can only get worse for the Socialists Why am I smiling
March 26th, 2008 at 2:27 pm
Farrar:
“The Herald reports that the Westpac consumer confidence index has it a 10 year low at 96.5. The previous low was 94.2 in June 1998.”
oh, funny that. Consumer confidence is low when our one or more of our trading partners is experiencing economic crisis (1998 -asian economic crisis.
LeeC:
“Looks like the dip is coming a year too early for Labour under Cullen/Clark. Oh dear. No one to blame but themselves.”
Yep, everything that’s wrong in your life is helen clark’s fault Lee.
March 26th, 2008 at 2:41 pm
We could get a NZ CONSTITUTION and a set of rules from NZ people,
about how we can have a NZ nation and geography which will sustain itself,
then our confidence would not wane and want
March 26th, 2008 at 3:33 pm
nattyhq – Yes – the global credit crisis has likely contributed to the worsening sentiment but remember that consumer confidence is lower now than during the bursting of the dot com bubble or the economic woes in the US after 9/11. Sentiment in NZ does not automatically move in tandem with overseas events. The cumulative effect of rising domestic interest rates, the turning of the local housing market and rising fuel costs would have contributed the bulk of the sentiment change.
March 26th, 2008 at 4:26 pm
Dismal
“bursting of the dot com bubble or the economic woes in the US after 9/11.”
As I recall the US economy sprang back pretty shortly after those events, so it’s little wonder that people are more worried about the sub-prime crisis – which has been heavily reported on now for many months, and has well and truly gone international.
“Sentiment in NZ does not automatically move in tandem with overseas events. The cumulative effect of rising domestic interest rates, the turning of the local housing market and rising fuel costs”
But we import 80% of our fossil fuels. That is an “overseas event” that has become domestic. I do agree however that Labour seems to have done little to expand the supply of residential land, which would have mitigated a lot of drastic rise in housing prices, which have in turn added to inflationary pressures, and consequently higher interest rates. But as I understand it, a lot of the problem lies with zoning restrictions put in place by local councils, that are often stacked with property developers who don’t want to see the value of their existing capital plummet. So my question is, would the National party go all “nanny state” and reduce the autonomy of the local councils, whilst doing harm to their financial backers in order to fix this problem? I certainly have my doubts.
March 26th, 2008 at 5:16 pm
New Zealanders are having to tighten their belts, it is about time Helen and co did so too.
http://nzdebate.blogspot.com/2008/03/consumer-confidence-at-10-year-low.html
March 29th, 2008 at 8:26 am
gd said..
“..Watchy as they sink under the 30 point mark at the next poll with JK and the Nats hitting 55 points”
um..!..gd..!
..http://whoar.co.nz/2008/nationals-lead-over-labour-is-halved/
(heh..!..)
phil(whoar.co.nz)