NZ consumer confidence eases in November -survey

WELLINGTON, Nov 23 - New Zealand consumers' confidence eased for the first time in five months in November, but most expressed optimism about future conditions, a survey showed on Monday.

The ANZ-Roy Morgan consumer confidence index slipped 4.4 points to 121.5. A reading above 100 shows optimism, below it pessimism.

"Consumers will remain cautious about their spending decisions heading into the all important holiday shopping season," the ANZ said in an accompanying statement.

The survey follows a series of positive data pointing to an economy that is posting modest and patchy growth as it emerged in the June quarter from 15 months of recession.

The survey showed a net 44 percent of respondents felt they would be better off over the next 12 months, up 1 percentage point on the previous month.

A net 22 percent felt they were currently worse off than a year ago from 17 percent in October.

The Reserve Bank of New Zealand has dropped interest rates to a record low 2.50 percent and pledged to keep them low until the second half of 2010 to support the economy.

The central bank next reviews rates on Dec. 10 and is seen holding rates steady with the same dovish tone, despite market expectations that a steadily improving domestic economic picture will force it to raise rates sooner.

However, uncertainty about the strength of recovery has seen market pricing ease back to a 40-60 percent chance of a 25 basis point rise in March from the previous 100 percent expectation. <NZDOIS>

Of the 1,020 surveyed by Roy Morgan, the number believing it was a good time to buy a major item eased slightly. A net 46 percent thought there would be mainly good economic times over the next five years, down from a net 57 percent in October. ((gyles.beckford@reuters.com ; +64 4 471 4231; Reuters Messaging: gyles.beckford.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))