New Zealand: Consumer confidence increases in July
The ANZ-Roy Morgan consumer confidence indicator rose to 81.9 in July from June’s 80.5. Therefore, the index remained entrenched below the 100-threshold that separates optimism from pessimism among consumers.
July’s result was driven by households’ improved expectations of their financial situation in one year view. Moreover, their assessments of their current financial conditions strengthened, while consumers had weaker confidence with regards to the 12-month general economic outlook. On the other hand, willingness to buy big-ticket items deteriorated.
Commenting on the release, Sharon Zollner, chief economist at ANZ, stated:
“The question is not whether consumption growth will slow. The question is how much damage the Reserve Bank is going to have to do to the housing market and labour market to ensure that it does slow – and meaningfully, as that is the means by which strong domestic inflation can be conquered.”