New Zealand: Consumer confidence slides further in December
The ANZ-Roy Morgan consumer confidence indicator dropped in December for the second consecutive month, from 123.7 in November to 121.8, marking the lowest reading since April. However, the print was still fairly high by historical standards, and the index remains comfortably above the 100-point threshold that separates optimism from pessimism among consumers.
December’s drop was driven by falls in both the current and future conditions indices. Consumers grew less optimistic regarding their financial situation over the next year and the last 12 months, and the economic outlook over the next five years. They also became less willing to purchases major household items. Overall, consumer confidence has remained fairly resilient, despite a weaker housing market, heightened policy uncertainty since September´s election and elevated household debt levels. A robust labor market – the unemployment rate fell to a multi-year low in Q3 – is likely playing a role in supporting sentiment.