New Zealand households just got poorer - $3.4 billion poorer in the last quarter to be precise.
The net worth of the average household fell over $5900, or 1.2 percent, during the March quarter – the largest fall in almost a decade, according to a new survey.
The March decline comes on the back of a revised decline during the December quarter of $2500.
The decline was the combination of a fall in the value of financial and physical assets coupled with a continued 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.
In annual terms, net worth rose 2 percent, down from 6.9 percent growth in the year to December.
The value of total household assets fell by $3.4 billion in the quarter.
