Friday, July 11, 2008

Net worth of New Zealand households falls

Spicers, which describes itself as "one of New Zealand’s most successful financial advice firms", had another dose of gloomy news for us today.

According to a new survey by the company, the net worth of the average household fell more than $5900, or 1.2 percent, during the March quarter – the largest fall in almost a decade.

The March decline follows a revised decline during the December quarter of $2500.

Spicers says the decline was a result of a fall in the value of financial and physical assets coupled with a further increase in debt.

The index of household assets fell 0.5 percent in the quarter – the first decline in seven years. This was mainly due to the fall in house prices and the fall in the value of managed funds and shares.

Household liabilities continued to rise, but at a slower rate. Liabilities rose 2.2 percent in the quarter, slower than the 2.7 percent rise in the December quarter.

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