Retailers can look forward to higher spending growth on the back of an improving labour market, as consumer confidence picks up, according to a bank survey.
The BNZ survey is short-lived, starting in May last year, but since then those expecting the economy to improve in the year ahead has risen from just under 30 per cent net positive, to 47 per cent. The upbeat consumer mood was a supporting factor behind widespread forecasts for strong growth in the economy this year.
The latest BNZ consumer trends survey shows a sharp drop in those saying that jobs or extra hours were getting harder to find.
Only a net 12.2 per cent of those surveyed felt extra jobs or hours were becoming "less available". Two months ago the result was a net 23.8 per cent saying work was getting harder to find. BNZ economists said that made them more confident shops could expect greater spending as a result of the improving job market.
And it is not just in Auckland and Christchurch where the job market is improving. In Wellington a net 12 per cent of those surveyed said it was harder to find work, compared with 24 per cent two months ago.
A net 47 per cent of those surveyed expected the economy to be in better shape in a year's time, up from 30 per cent. Fairfax NZ