New Zealand: Consumer confidence steady in June
July 5, 2021
The ANZ-Roy Morgan consumer confidence indicator inched up to 114.1 in June from May’s 114.0. Therefore, it moved further above the 100-threshold that separates optimism from pessimism among consumers.
June’s reading was driven by consumers’ improving confidence with regards to the one-year general economic outlook. Moreover, households’ assessments of their financial situation compared to one year ago got rosier, while answers also highlighted that consumers were more inclined to buy major household items compared to the prior month. On the other hand, their expectations with regards to the five-year general economic outlook worsened, while perceptions regarding inflation jumped to a record high.
Commenting on the release, Sharon Zollnern analyst at ANZ, reiterated that consumers inflation expectations remain high:
“Household inflation expectations are typically too high – and volatile – but that doesn’t mean they don’t matter. […] As for business inflation expectations, a key question will be how long they remain elevated. But the data certainly underlines that risks to inflation are looking decidedly one-sided at present.”