New Zealand consumer confidence fell to 80.4 in Q2
New Zealand consumer confidence dropped to its lowest level since 2023, falling to 80.4 in the second quarter from 94.7 in the prior quarter.
The decline in consumer sentiment is attributed to higher fuel and living costs stemming from the Middle East conflict, along with upward pressure on borrowing costs.
The Reserve Bank of New Zealand has flagged at least two quarter-point rate hikes by year-end, despite unemployment sitting at a decade high of 5.3%.
The weakening sentiment backdrop reduces the likelihood that domestic demand will keep inflation elevated without additional policy tightening.