A mixed bag of economic confidence in the Bay

If you're not feeling financially well-off at the moment you're not alone.

A survey of household economic confidence in the Bay of Plenty shows that while we are optimistic about our regional economy, we're not so confident about our own financial circumstances.

The Westpac-McDermott Miller Regional Economic Confidence survey for the June 2018 quarter found that 45 per cent of Bay of Plenty households expect their region's economy to improve over the next 12 months.

This is a significantly higher than the 27 per cent recorded for the March 2018 quarter and makes the Bay of Plenty region the second most optimistic in the country.

The Westpac-McDermott Miller survey also examines consumers' views on their own economic situation, producing an index that summarises responses to questions including how respondents view their own financial situation, their current willingness to buy a major household item and the outlook for the national economy.

The Westpac-McDermott Miller Consumer Confidence Index for the Bay of Plenty fell from 118 in March to 112 in the June quarter.

'Households in the Bay of Plenty are feeling less confident than they have been about the New Zealand economy, although an increasing number still expect their financial circumstances to improve over the next 12 months,” says Westpac chief economist Dominick Stephens.

'That said, with more households feeling worse off than they did in the previous quarter, they are less willing to purchase large household items.”

Dominick says overall household optimism in the Bay of Plenty reflects the performance of the horticultural sector, which has benefitted from higher avocado and kiwifruit prices.

'Elevated forestry and dairy prices, increased tourist arrivals and the likelihood of more investment out the Provincial Growth Fund is also likely to have lifted the mood.”

However, the potential for the Mycoplasma bovis cattle disease to spread into the region is likely to be a source of concern, especially given outbreaks in nearby regions, says Dominick. Construction activity is also expected to soften given a recent fall in building consents.

The survey was conducted over the period June 1-11.

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