New Zealand: Consumer confidence falls in Q3 from three-year high in Q2
September 16, 2013
The Westpac-McDermott Miller consumer confidence indicator fell to 115.4 points in Q3, down from the 116.6 points recorded in Q2. The Q2 reading marked a three-year high. Nevertheless, the index is still above the 100-point threshold, which indicates that optimists outnumber pessimists.
According to Westpac, the slight fall in Q3 reflects, "a greater degree of financial caution," with fewer consumers willing to purchase major goods or to spend more money versus saving it. The third quarter survey also showed that households are less optimistic about the current economic situation. Conversely, however, consumers indicated that they are more optimistic about the country's economic prospects.
FocusEconomics Consensus forecast participants expect private consumption to expand 2.1% this year, which is down 0.1 percentage points from last month's projection. For 2014, the panel sees private consumption increasing 2.3%.
Author: Ricardo Aceves, Senior Economist