The ANZ-Roy Morgan Consumer Confidence Index in New Zealand dropped 2 points to 96.2 in October 2026, marking the eighth straight month below the neutral 100 mark. Despite the decline, confidence has improved by 16 points since its April low, suggesting some recovery. Consumers remain cautious due to high fuel prices, inflation outpacing income growth, and a weak currency, though export sectors are seeing benefits.
Households are feeling the pinch, with the net share of those viewing it as a good time to buy major household items falling 10 points to -17%. This decline reflects growing cost-of-living pressures impacting spending plans. However, not all indicators are negative. Expectations for personal finances over the next year have risen for a fourth consecutive month, maintaining a positive outlook.
House price inflation expectations eased to 2% from 2.4%, the lowest since July 2023, while inflation expectations fell to 4.2% from 4.5%, the lowest since March 2025. These improvements suggest a slight easing of economic pressures, though overall consumer sentiment remains subdued.