New Zealand: Consumer confidence drops to lowest in almost two years
December 22, 2014
The Westpac-McDermott Miller consumer confidence indicator recorded a second consecutive decline and fell from the 116.7 points recorded in Q3 to 114.8 points in Q4 2014. The reading marked the lowest level since Q3 2013. However, the index is still far above the 100-point threshold indicating that optimists outnumber pessimists.
The moderation in Q4 reflected that consumers assessed both current and expected future economic conditions worse than in Q3. Actually, all sub-categories of the index declined in Q4. According to Westpac, the decline reflects that, “gloom around the dairy outlook seems to have loomed […] in consumers’ minds.” On the upside, Westpac commented that, “the drop in consumer optimism doesn’t seem to have led to significant belt-tightening – the survey’s ‘spending’ questions have held up fairly well.”