New Zealand Consumer Confidence May 2020

New Zealand

New Zealand: Consumer confidence bounces back but remains in pessimistic terrain in May

May 29, 2020

The ANZ-Roy Morgan consumer confidence indicator jumped to 97.3 in May from April’s 84.8, as lockdown measures were gradually lifted. However, it remained below 100-threshold that separates optimism from pessimism among consumers for the second time in eleven years.

The number of households thinking it was a good time to buy major household items soared in May, although it remained in pessimistic terrain, pushing up the overall index. Moreover, consumers’ expectations on next year’s general economic outlook improved, as did consumers’ expectations over their future personal finances. Additionally, households’ assessments about their current financial situation compared to one year ago recovered some lost ground, similar to what happened to their five-year general economic outlook.

Commenting on the release, Sharon Zollner, ANZ chief economist, stated:

“We absolutely should celebrate our success in beating back COVID-19, but the wreckage lies all around us. The loss of jobs in international tourism in particular is a hole that won’t be filled easily or quickly. We see elevated unemployment affecting household sentiment and spending for a long time yet.”

FocusEconomics panelists project private consumption to shrink 8.3% in 2020, which is down 1.5 percentage points from last month’s forecast. They see it expanding 7.5% in 2021.

Author: Massimo Bassetti, Economist

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New Zealand Consumer Confidence Chart

New Zealand Monthly Consumer Confidence May 20 20

Note: Monthly consumer confidence index. An index number over 100 indicates more optimists than pessimists, while a number under 100 indicates more pessimists than optimists.
Source: ANZ-Roy Morgan NZ Consumer Confidence Survey.

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