The latest ANZ-Roy Morgan New Zealand Consumer Confidence
found that confidence index dropped from 126.3 to 123.7 in November – this is a seven month low, but still above historical averages.
The report showed a slight rise in the current conditions index by 0.6 to 124.6 and a fall in future conditions index by 4.6 to 123.2.
According to the index, consumers continue to feel happy about their current financial situation with a net 15% feeling financially better off than a year ago. This measure has bobbed around healthy levels for the last 12 months.
A net 29% of consumers say they expect to be better off financially this time next year. That is down 5ppts on October and the lowest since August 2016.
A net 34% still believe it’s a good time to buy a major household item. House price growth has fallen, which would typically impact spending on big-ticket items.
Confidence is highest in Wellington (128.8) and lifted in Auckland (up 2.8 points to 126.3). However, the other centres saw reasonable falls, with Canterbury and the rest of the South Island down 7 and 8 points respectively. Confidence is lowest in regional North Island (118.9).
“On many levels, it is encouraging that headline consumer sentiment is still holding at reasonable levels,” ANZ senior economist Phil Borkin said.
Overall, ANZ’s confidence composite gauge continues to indicate good economic momentum. However, it is clear there are a number of broader cross-currents to be aware of, Borkin said.
Short-term losses up in property market
Consumer confidence drops slightly
Consumer confidence has slipped with New Zealanders looking through housing headwinds and the recent period of political uncertainty with a cautious eye to the future.