New Zealand: Consumer confidence dips in Q3, but remains solid
October 12, 2017
The Westpac-McDermott Miller consumer confidence indicator dipped from 113.4 points in Q2 to 112.4 points in Q3, thus remaining comfortably above the 100-point threshold that separates optimism from pessimism. The slight dip could reflect concerns about the cooling housing market.
Q3’s mild drop was driven by consumers’ less optimistic view regarding their expected financial situation and their one and five-year economic outlook. In addition, consumers became marginally less willing to make major purchases compared to Q2; this is likely tied to the weaker housing market, with less people moving home compared to a year ago. Despite regarding the future in a less rosy light, consumers reported improved present conditions, and grew more positive regarding their current financial situation.
Author: Oliver Reynolds, Economist