New Zealand: Consumer confidence improves in August
The ANZ-Roy Morgan consumer confidence indicator rose to 85.0 in August from 83.7 in July. Therefore, the index remained entrenched below the 100-threshold that separates optimism from pessimism among consumers.
In August, households’ expectation over their financial situation in 12 months improved, as did their assessments of their current financial situation. Moreover, households were more willing to buy big-ticket items.
Commenting on the release, Sharon Zollner, chief economist at ANZ, stated:
“Any rebound as inflation falls is likely to overstate the tailwinds for retail spending. At the end of the day, New Zealand has been living beyond its means for some time, as demonstrated by an enormous current account deficit, and a period of national penance is inevitable.”