New Zealand: Consumers more upbeat in Q2
June 19, 2017
The Westpac-McDermott Miller consumer confidence indicator increased from 111.9 points in Q1 to 113.4 points in Q2, remaining comfortably above the 100-threshold that separates optimists from pessimists.
Q2’s increase reflects consumers’ more optimistic outlook in almost all components of the index. The country’s one-year and five-year economic outlook was perceived in a more positive light and this in turn resulted in an improvement in their expected financial conditions. A highlight from the survey is that increases in confidence were observed across income levels and across the country, pointing to a broad-based increase. On the other hand, consumers were less optimistic of the current financial conditions and present conditions, weighing down their willingness to purchase big ticket items and current expenditure. The drop in confidence of current conditions partly reflects rising borrowing rates and a cooling housing market. Despite the decrease, the survey mentioned that households remain upbeat about economic conditions and the drop should not be a cause of concern.