New Zealand: Consumers turn pessimistic in October
November 10, 2021
The ANZ-Roy Morgan consumer confidence indicator fell to 98.0 in October from September’s 104.5. Consequently, the index moved below the 100-threshold that separates optimism from pessimism among consumers.
October’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 pessimistic. Additionally, consumers’ perceptions regarding inflation soared compared to the previous month, while their willingness to buy big-ticket items remained entrenched in negative terrain.
Commenting on the release, Sharon Zollnern analyst at ANZ, stated:
“Four potential causes leap to mind: inflation, mortgage rate rises, Covid-19 uncertainty, and supply shortages. Whatever the cause, this series will be key to watch for gauging momentum in the economy as the year progresses.”