New Zealand: Consumer confidence drops in June
The ANZ-Roy Morgan consumer confidence indicator fell to 80.5 in June from May’s 82.3. Therefore, the index moved further below the 100-threshold that separates optimism from pessimism among consumers.
June’s result was driven by households’ worsened expectations of their financial situation in one year view. Moreover, their assessments of their current financial conditions soured, while consumers had weaker confidence with regards to the five-year general economic outlook. On the other hand, willingness to buy big-ticket items improved but remained entrenched in negative terrain.
Commenting on the release, Sharon Zollner, chief economist at ANZ, stated:
“Overall, these data are sending sobering signals about the outlook. In particular, retail spending could soon find itself on the ropes.”