A new survey shows household confidence drops ahead of elections
Consumer confidence softened to 112.4 in September, down from 113.4 last quarter, according to the latest Westpac McDermott Miller survey
The slight fall in confidence was mainly due to a little less optimism about the economic outlook over the next year.
“That may reflect concerns about the continuing slowdown in the housing market. But while households may be a little less optimistic, they’re certainly not pessimistic,” Westpac senior economist Satish Ranchhod said.
“In fact, the proportion of households reporting that they are in better shape financially than they were last year is at its highest level in a decade.”
With confidence still at firm levels, households remain in the mood to spend, especially on leisure activities like dining out, Ranchhod said.
The findings showed people's view of their current financial situation improved to 5.4% better off from a year ago, while their expected financial situation dropped 3.7 points to a net 5.6% positive.
The number of households who are thinking about purchasing a major household item dropped to a five year low at 19.2% in September. .In contrast, spending on entertainment and leisure rose to a 10-year high.
“With the housing market slowing, this could have an important impact on households’ financial health over the coming years,” Ranchhod said.
The survey was conducted from 1553 New Zealanders earlier this month.
The slight fall in confidence was mainly due to a little less optimism about the economic outlook over the next year.
“That may reflect concerns about the continuing slowdown in the housing market. But while households may be a little less optimistic, they’re certainly not pessimistic,” Westpac senior economist Satish Ranchhod said.
“In fact, the proportion of households reporting that they are in better shape financially than they were last year is at its highest level in a decade.”
With confidence still at firm levels, households remain in the mood to spend, especially on leisure activities like dining out, Ranchhod said.
The findings showed people's view of their current financial situation improved to 5.4% better off from a year ago, while their expected financial situation dropped 3.7 points to a net 5.6% positive.
The number of households who are thinking about purchasing a major household item dropped to a five year low at 19.2% in September. .In contrast, spending on entertainment and leisure rose to a 10-year high.
“With the housing market slowing, this could have an important impact on households’ financial health over the coming years,” Ranchhod said.
The survey was conducted from 1553 New Zealanders earlier this month.
