New Zealand: Consumer confidence ticks up in May
June 1, 2018
The ANZ-Roy Morgan consumer confidence indicator ticked up to 121.0 in May from 120.5 in April, which had marked the lowest reading since August 2016. The index now sits slightly further above the 100-point threshold that separates optimism from pessimism among consumers.
May’s improvement resulted from an increase in the current conditions index over the previous month, as consumers grew more upbeat regarding their current financial situation. Households’ willingness to make major purchases declined marginally, but remained strong. Meanwhile, the future conditions index dropped slightly compared to April, with consumers turning slightly less optimistic in their one- and five-year outlooks regarding the general economic situation. Households’ expectation of their financial situation in 12 months’ time, however, improved slightly from the previous month.
All told, consumer confidence remains strong against a backdrop of a tight labor market and low interest rates, both boing well for private consumption going forward.
Author: Javier Colato, Economist