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.”