New Zealand Consumer Confidence Slips Back Amid Oil Price Uncertainty

The latest ANZ Roy-Morgan consumer confidence survey shows that New Zealand consumers are still uncertain about their economic future, despite an improvement in sentiment over the past few months. The August survey recorded a below-par reading of 98, down one point from the previous month. This is still 18 points higher than the April low.

The proportion of households thinking it's a good time to buy a major household item fell five points to -12. ANZ economists say that while the economy has recovered from the shock caused by rising oil prices in February, uncertainty about the economic outlook remains a headwind.

However, there are some positive signs for the future. The survey showed that 22% of respondents expect to be better off this time next year, which is the strongest reading since January. Perceptions regarding the economic outlook over the next 12 months improved by one point to -12%, and the five-year-ahead measure also rose by one point to +13%, its strongest reading since May 2021.