The survey** by Mastercard has upgraded New Zealand’s consumer confidence from neutral to optimistic with a score of 62.2. This is a 6.8 point increase since the previous survey was undertaken six months ago, the first time New Zealand has been classed optimistic since 2014.
The index, which measures the six month outlook on five economic factors including the economy, employment prospects, regular income prospects, stock market and quality of life, is calculated on a scale of 0 to 100, with zero as the most pessimistic, 100 most optimistic, and 50 as neutral.
The latest survey highlighted that New Zealanders are more confident across economic (64.3), employment (64.0), quality of life (52.4) and stock market (56.6) factors. Regular income confidence, the highest measure in the survey, dropped 2.1 points to 73.9.
“It’s great to see New Zealand break into the optimistic group of the survey for only the second time since 2010 – although it’s unsurprising considering New Zealand’s economy has been growing robustly in recent times,” says Peter Chisnall, Mastercard Country Manager for New Zealand and Pacific Islands.
“We’re seeing strong tourism and migration underpin consumer spending, while the housing shortage and Canterbury rebuild have buoyed building activity. And with annual GDP growth of 3.6%, this is not only historically strong, but in the top tier of growth performance across the developed world,” says Chisnall.
More than a third of Kiwi consumers expressed confidence in their future prospects and sense of health security.
“The labour market remains strong, particularly in Auckland, and we are continuing to enjoy high levels economic and political stability. This contributes to an ongoing stable business and social environment which in turn provides Kiwis with the confidence to seek new opportunities,” adds Chisnall.
Internationally, New Zealand’s consumer confidence score is just below the average for the rest of the Asia Pacific region, which came in with a score of 68.1. The country is significantly ahead of neighbouring Australia, which scored 46.5.
New Zealand remains ranked 9th overall, while Australia placed 10th out of the 17 surveyed markets.
Mastercard Index of Consumer Confidence New Zealand – 2H16
Overall MICC 62.2, optimistic; some improvement from six months ago (+6.8)
- Employment 64.0, optimistic; significant improvement from six months ago (+11.4)
- Economy 64.3, optimistic; significant improvement from six months ago (+12.7)
- Regular income 73.9, optimistic; stable compared to six months ago (-2.1)
- Stock market 56.6, neutral; stable compared to six months ago (+1.7)
- Quality of life 52.4, neutral; significant improvement from six months ago (+10.3)
Hashtag: #MastercardNZ
**The Mastercard Index of Consumer Confidence survey has a 20-year track record of consumer confidence indices collected from over 200,000 interviews. It is the most comprehensive and longest running survey of its kind in the Asia Pacific region. In June 1997, the index revealed a decline in consumer confidence – one month prior to the devaluation of the Thai baht that triggered the regional economic crisis. In June 2003, the Index score for Employment in Hong Kong dropped to a low score of 20. This was subsequently reflected in Hong Kong’s unemployment rate, which peaked just before September 2003 at 8%.
The survey began in the first half of 1993 and has been conducted twice yearly since. Seventeen Asia Pacific markets now participate in the survey: Australia, Bangladesh, mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, New Zealand, Philippines, South Korea, Singapore, Taiwan, Thailand and Vietnam.
*The MICC Index score and the five component index scores range from 0 to 100 where 0 represents maximum pessimism, 100 represents maximum
optimism and 50 represents neutrality.
**The Mastercard Index of Consumer Confidence survey has a 20-year track record of consumer confidence indices collected from over 200,000 interviews. It is the most comprehensive and longest running survey of its kind in the Asia Pacific region. In June 1997, the index revealed a decline in consumer confidence – one month prior to the devaluation of the Thai baht that triggered the regional economic crisis. In June 2003, the Index score for Employment in Hong Kong dropped to a low score of 20. This was subsequently reflected in Hong Kong’s unemployment rate, which peaked just before September 2003 at 8%.
The survey began in the first half of 1993 and has been conducted twice yearly since. Seventeen Asia Pacific markets now participate in the survey: Australia, Bangladesh, mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, New Zealand, Philippines, South Korea, Singapore, Taiwan, Thailand and Vietnam.
Between November and December 2016, 8,723 respondents aged between 18 to 64 in 17 Asia Pacific markets, were asked to give a six-month outlook on five economic factors. Respondents were asked five questions pertaining to their six-month outlook on the economy, their employment prospects, the local stock market, their regular income prospects, and their quality of life. The results of their responses were converted in five component indexes which were subsequently averaged to form the MICC score. The MICC Index score and the five component index scores range from 0 to 100 where 0 represents maximum pessimism, 100 represents maximum optimism and 50 represents neutrality.
