Reuters New Zealand
NZ voter economic confidence softens in July-poll
Monday July 21, 11:30 AM
WELLINGTON, July 21 (Reuters) - New Zealand voters' confidence in the economy eased slightly in July amid a rapid slowdown, surging prices and high interest rates, a survey showed on Monday.
The One News-Colmar Brunton poll, taken last week, showed a net 27 percent of respondents were pessimistic about the economy over the coming 12 months, up from a net 25 percent in the previous survey in June.
The number of pessimists rose 2 percentage points to 55 percent, while the number of optimists was steady at 28 percent.
Data last week showed prices in the second quarter grew at their fastest pace in 18 years, while the annual inflation rate hit a two-year high at 4 percent.
Economists have said the economy is likely in recession because indicators in the three months to June 30 point to a contraction in activity, on top of the official 0.3 percent fall in the first quarter.
The central bank, which reviews its official cash rate on July 24, has said that it expects to start cutting rates later in the year as the slowing economy helps to bring high inflation under control.
A Reuters poll last week has four of 17 economists expecting a cut this week, within the rest forecasting a cut in September.
The One News-Colmar Brunton poll of 1,000 New Zealanders has a 3.1 percent margin of error.
A part of the survey published earlier showed the lead of the opposition centre-right National Party over the ruling centre-left Labour Party narrowing to 17 percentage points from 26 a month ago.
A Reuters survey of the five main polls shows median support for the Labour Party at 35 percent against 52 percent for the National Party. The next general election must be held by mid-November this year. (Reporting by Gyles Beckford)
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