The recent release of data from the June 2023 Household Economic Survey finally provides some answers on how high inflation has changed spending patterns. Necessities, such as food and insurance, are making up a higher proportion of spending, while nice-to-haves, such as home renovations or a new phone, are being sacrificed by households in the face of budgetary pressures.
High inflation in recent years has prompted much discussion about how households are adjusting their spending to cope. Although wages have been increasing too, meaning that households can also afford more, we haven’t had a clear idea of the changing preferences and priorities that dictate what households are spending more or less on.
Electric vehicle (EV) uptake in New Zealand has been accelerating over the last few years. Uptake was helped along with financial incentives including the Clean Car Discount scheme and the exemption of EVs from paying road user charges (RUC). With the discount scheme gone and EV owners about to start paying RUC, the trajectory is likely to change.
We are excited to launch an expansion of our Quarterly Economic Monitor (QEM) to provide a broader perspective on the prosperity of New Zealand’s communities. In this article, we introduce and explore the 13 new indicators which reflect economic, labour, social, and housing outcomes at a local level.
Renters across New Zealand are feeling the squeeze as annual new rentals inflation reaches 5.1%pa. Excluding the mid-2022 peak, annual average rental inflation over the year to February 2024 is at its fastest rate since this series began in 2008.
The legacy Regional Economic Profile will be discontinued on 28 March 2024. The new look REP has been refreshed with improved functionality, new wellbeing data, and many new charts and tables. The REP provides in-depth economic insights into every region and territorial authority in New Zealand.
Infometrics monthly webinar recordings are available on our website. If you are a client, you will receive an invitation to the live webinar and can view the recording immediately. After one month, recordings are made available to the public. March 2024: Where next for cost pressures? February 2024: Regional socioeconomic insights
Recession again, as the squeeze on households continues
The latest GDP data showed the economy shrinking 0.1% in the December 2023 quarter, the fourth contraction in the last five quarters. On a per-capita basis, household spending is now falling at its fastest rate in over 30 years (excluding the COVID-19 lockdown).
This insight article is exclusively available to our subscribers ahead of our latest forecasts on 19 April 2024.
