New Zealand: Consumer confidence jumps into optimistic terrain in June
June 26, 2020
The ANZ-Roy Morgan consumer confidence indicator jumped to 104.5 in June from May’s 97.3, as lockdown measures were almost completely removed. Therefore, it moved above the 100-threshold that separates optimism from pessimism among consumers.
The number of households thinking it was a good time to buy major household items soared in June, moving into optimistic terrain and pushing up the overall index. Moreover, consumers’ expectations on next year’s general economic outlook improved, as did consumers’ expectations over their future personal finances. Additionally, households’ assessments about their current financial situation compared to one year ago recovered some further ground. On the flip side, their five-year general economic outlook deteriorated.
Commenting on the release, Sharon Zollner, ANZ chief economist, stated:
“Willingness to buy major household items has bounced enormously off its lockdown lows, but remains at the levels prevailing in the last recession – hardly a period that retailers recall with fondness. The current flurry of spending as households spend their involuntary lockdown savings (and international holiday budgets) is likely to peter out relatively soon.”