New Zealand: Consumer confidence remains high in Q3 despite moderation
September 22, 2014
The Westpac-McDermott Miller consumer confidence indicator fell from the 121.2 points recorded in Q2 to 116.7 points in Q3. 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.
According to Westpac, the moderation in Q3 reflected a decrease in all sub-categories of the index. The largest drop was recorded for the country’s near-term economic perspectives. Consumers’ willingness to spend money on big ticket items, their assessments of their own current financial situations as well as their expected future finances also moderated, although to a lesser extent. According to Westpac, in Q3 consumer confidence dropped, “on the back of less exuberant economic news, rising interest rates and, possibly, a bout of uncertainty ahead of the elections.”