New Zealand: Consumer optimism weakens in September
The ANZ-Roy Morgan consumer confidence indicator fell to 104.5 in September from August’s 109.6. That said, the index remained above the 100-threshold that separates optimism from pessimism among consumers.
September’s result was driven by consumers’ deteriorating confidence with regards to the one-year general economic outlook. Moreover, households’ assessments of their financial situation compared to one year ago turned less optimistic. Additionally, consumers’ willingness to buy big-ticket items plunged compared to the previous month, while their perceptions regarding inflation remained unchanged.
Commenting on the release, Sharon Zollnern analyst at ANZ, stated:
“Households continue to expect high inflation, and rightly so, given the perfect storm of global inflation pressures. This will make it easier for retailers to raise prices without fear of customer backlash, and also impact wage demands in a tight labour market.”