What the hell is with the headlines saying “Confidence surges post-election” and “New Zealand Consumer Confidence up 5.9 pts to 105.6, after John Key’s election as New Zealand’s new Prime Minister“.
I’ll tell you why consumer confidence rose in November – retail petrol prices fell 15%. I wouldn’t have minded the random conjecture that a change of government made consumers confident – as I would expect a small boost myself. However, they completely ignored fuel prices – how can Roy Morgan tell us what to do with interest rates (which he does every two weeks) without understanding the important relationship between petrol to real incomes and confidence.
How can they seriously think that the election was the primary source of this confidence boost – I’m startled!
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