July’s ANZ-Roy Morgan index shows a third consecutive monthly gain, driven by improved future conditions expectations amid stable inflation views.
New Zealand consumer confidence climbed to 99.3 in July, up 8 points from June, marking a third straight monthly increase. The rise was led by a surge in forward-looking sentiment, which jumped to 106.5 from 96.7, the first reading above neutral since February. Current conditions also improved, rising 5.3 points to 88.5, though still below pre-downturn levels.
The index remains 19 points above April’s trough of 80.3 but 8 points below January’s peak. Households’ expectations for future financial conditions strengthened, with a net 21% anticipating improvement next year, the highest since January. Inflation expectations held steady at 4.6%, unchanged despite the Reserve Bank of New Zealand’s recent 25-basis-point rate hike.
Markets showed little reaction to the data, as wholesale rates remained stable. Analysts noted that while confidence is recovering, rising oil prices could dampen sentiment in the next report.