Statistics hint at improving economy

Published: Tue 1 Feb 2011 04:28 PM
Statistics hint at improving economy
Auckland 27 February 2011 New Zealanders showed a renewed appetite for credit in the run-up to Christmas indicating that they believe the economy is starting to improve in the wake of the credit crunch.
Latest December 2010 statistics from leading credit bureau Veda Advantage show a turnaround in inquiries for mortgages and credit cards. At the same time numbers of inquiries for consumer credit are trending back up from a 2009 low.
Veda Advantage Managing Director John Roberts says the data shows a definite trend in consumer confidence.
“The credit crunch shocked people and they changed their behaviours quickly, but now we are seeing a renewed but cautious approach to credit. People were clearly more active in late 2010 and I expect to see this optimism continue in 2011.”
The data shows an overall 5.73 percent increase in credit card applications in December 2010 compared with December 2009. Baby Boomers showed the most enthusiasm with a 13.18 percent increase in applications while Gen Y applications were still down 7.46 percent.
The December 2010 data also shows a near one percent increase in applications for mortgages (0.99 percent). Again it was the Baby Boomers and Gen X who were seeking credit.
The monthly figures show consumer applications down 1.89 percent compared with December 2009. Mr Roberts says it appears, overall, that we have seen the bottom of the consumer reaction to the credit crunch. New Zealanders are now taking careful steps back into the consumer-credit world.
“This is good for business and this is good for the country,“ he says.

Next in New Zealand politics

Gordon Campbell on a new book on the leaky homes scandal
By: Gordon Campbell
Review finds NZTA road safety regulation failings
Climate Change Commission Chair-designate announced
By: New Zealand Government
Government putting right Holidays Act underpayment in Health
By: New Zealand Government
Police should not have pursued youths on Auckland motorway
By: Independent Police Conduct Authority
Locked-in care is a ‘hard place to be happy’
By: Office of the Children's Commissioner
Campaigner welcomes removal of racist refugee restrictions
By: Murdoch Stephens
Sroubek report confirms Minister made wrong decision
By: New Zealand National Party
NZTA to refocus on safety following review
By: New Zealand Government
NZTA to adopt "safety first"?
By: Movement
NZ roads will never cope with heavier trucks
By: Citizens Environmental Advocacy Centre
National Party open to higher methane targets
By: BusinessDesk
NZ to go Dutch to battle climate change
By: BusinessDesk
Small end of town needs to chip in on climate change - Carr
By: BusinessDesk
Carr named to chair Climate Change Commission
By: BusinessDesk
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media