New Zealand: Consumer confidence edges down in June
The ANZ-Roy Morgan consumer confidence indicator edged down from 121.0 in May to 120.0 in June, marking the lowest print since August 2016. Nevertheless, the index remained comfortably above the 100-point threshold that separates optimism from pessimism among consumers.
June’s decline was driven by a marked drop in the future conditions index over the previous month. Households’ outlook of the general economic situation in one year’s time deteriorated notably, and their five-year economic outlook also worsened, albeit more moderately. Moreover, consumers turned slightly less optimistic about the prospect of being financially better off in one year. Conversely, the current conditions index improved from May, with consumers’ willingness to buy major household items increasing markedly in June. Nevertheless, consumers felt less upbeat over their current financial situation compared to May.
All told, the headline indicator came in line with its historical average in June. A tight labor market and low interest rates continue to support strong consumer confidence. That said, the dip likely reflects consumers’ increased wariness about the future.