New Zealand: Consumer confidence dips in December
December 15, 2017
The ANZ-Roy Morgan consumer confidence indicator dropped in December for the third consecutive month, to 121.8 from 123.7 in November. However, the reading was still high by historical standards, and the index remains comfortably above the 100-point threshold that separates optimism from pessimism among consumers.
December’s drop was driven by declines in both the future and current conditions indices. Consumers grew less optimistic regarding their financial situation in a year’s time, and also became less positive regarding the economic outlook in the short and long term. However, consumers still remain willing to buy major household items and are generally satisfied with their current financial situation. Low unemployment is likely supporting sentiment, although a softening housing market, elevated debt levels and policy uncertainty are taking some of the wind out of consumers’ sails.
Author: Oliver Reynolds, Economist