Businesses are losing confidence – here’s hoping world leaders don’t lose theirs

Is the next recession  on  its   way?  Government   ministers  have brushed  aside  reports of falling  business and   consumer  confidence. They  argue   the  economy  is  trucking  ahead on a  solid growth  path.

Ominously, though, investors sniffing the breeze  feel  a  chill   in the air:  the   sharemarket’s  top 50 index  has  slumped  7%  in the last  10  days.

And  the government’s own   action  in  raising  petrol  taxes  has been the trigger  for  consumers to  pull  back spending.  The latest OneNews Colmar Brunton poll   found   57%  of  respondents  had either  adjusted  their  spending patterns or  reduced their driving.

People also spent less on essential items like groceries and electricity.  Spending on non-essential items  dropped by 44%.  

Motorists brace for higher fuel taxes while the govt paves the way for more cycling

Motorists  will be  bracing themselves   for another round of petrol price increases—not  only  because  the   government is  increasing petrol tax  by 3.5c a litre on  October  1,  but  also  because international crude prices are rising  and the  NZ  dollar  has depreciated around  13%  since March.

Prices  for  West Texas  and  Brent crude  have risen  between  35%  and  40%  since   this time  last year.  At the pump  the national fuel price last month  for  91 octane  was  $2.32 a  litre,  with  prices of up to  $2.50 in some regions.

Stations in Wellington and many parts of the South Island, and other areas which use the so-called “national price”, are now charging $2.409 a litre for regular petrol, the latest in a series of record highs seen in recent weeks.

Diesel prices, at $1.809, are at the highest level in just over a decade.