New Zealand: Consumer confidence drops in August
August 28, 2020
The ANZ-Roy Morgan consumer confidence indicator dropped to 100.2 in August from July’s 104.3, suggesting increased wariness amid a resurgence of coronavirus cases. Despite the dip, it remained barely above the 100-threshold that separates optimism from pessimism among consumers.
The net proportion of households thinking it was a good time to buy major household items fell to negative terrain for the first time since May. Moreover, households’ assessments about their current financial situation and over the next 12 months deteriorated further. Similarly, consumers’ expectations on the five-year general economic outlook weakened.
Commenting on the release, Sharon Zollner, ANZ chief economist, stated:
“Reality bites. We’re battling COVID-19 once more, and the Auckland hospitality and retail sectors are the cannon fodder. Job insecurity will have increased for many as a result of the second lockdown. But even once that is dealt with, huge uncertainty about the future remains, with the income hit from the loss of international tourists still largely to come, given the seasonality of it.”