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.

ENDS

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