Q2 Westpac McDermott Miller Consumer Confidence, barely changed from Q1 to Q2, a very marginal easing.
Westpac says:
- Consumer confidence has edged lower, but remains near nine-year highs
- The drop was mainly due to a drop in economic optimism – particularly in smaller centres and rural areas, consistent with the recent drop in dairy prices
- The survey showed little impact so far of rising interest rates
And more:
- After a period where it seemed that all New Zealand economic news was good news, it’s been a more mixed bag in the last three months.
- The construction boom has continued apace
- Has been a more than 20% drop in global dairy prices
- Reserve Bank on NZ has begun raising interest rates
- The housing market has been sluggish
- Consumers’ economic optimism has come off the boil – especially in smaller centres and rural areas, where the drop in dairy prices will have been particularly salient – overall consumer confidence remains extremely high, and today’s survey gives little sense that households’ spending appetites have cooled.
- The survey suggests that the impact of rising interest rates on consumers has been minimal to date – perhaps reflecting the fact that borrowers have had the opportunity to fix their mortgages at favourable rates.
- Compared to three months ago, consumer attitudes towards their own finances are little changed overall; and their attitudes towards saving and debt repayment are back where they were in the spendthrift 2000s. The Reserve Bank will be taking note, and feeling validated in its decision to signal more rate hikes to come.
