ANZ-Roy Morgan NZ Consumer Confidence fell 11pts to 80.3 in April, a three-year low, down 20pts in two months.
ANZ-Roy Morgan NZ Consumer Confidence fell 11pts to 80.3 in April, a three-year low, down 20pts in two months. Inflation expectations jump to 6.6%.
Personal finances weakest since mid-2008. Retail outlook deteriorates sharply. Summary: The ANZ-Roy Morgan Consumer Confidence index fell 11 points in April to 80.3, its lowest reading in approximately three years, having dropped 20 points in the two months since the Middle East conflict began The future conditions index fell from 96.7 to 85.9, its lowest in two years, while the current conditions index dropped from 83.1 to 71.9, the weakest since October 2023 Perceptions of current personal financial situations fell 11 points to a net -31%, the weakest reading since mid-2008, driven by the cost of living rather than income declines, as the oil shock has not yet meaningfully hit household incomes The net proportion of households viewing now as a good time to buy a major household item, considered the survey’s best retail indicator, fell 11 points to -25, the weakest since September 2024 Perceptions of the economic outlook over the next 12 months fell 23 points to -48%, the lowest in three years; the five-year-ahead measure fell 2 points to +3% Two-year-ahead CPI inflation expectations jumped 0.9 percentage points to 6.6%, against a backdrop of petrol prices up approximately 30% year-on-year and food price inflation running at 4% to 5% House price inflation expectations eased from 3.8% to 3.2% Only a net 3% of respondents expect to be better off financially this time next year, down 7 points The oil price shock is identified as the clear driver, affecting household budgets directly through petrol prices and indirectly through broader concern about job security and economic conditions The widening gap between consumer inflation expectations of 6.6% and firms’ wage expectations of 2.5% is flagged as a key concern, alongside the noted drag on sentiment from expectations of OCR hikes New Zealand consumer confidence has…