NZ Consumer Confidence Jumps, But Remains Below Average
New Zealand consumer confidence has shown signs of improvement, but remains below average. According to Westpac's latest survey, the consumer confidence index jumped 9.1 points in the September quarter to 89.5. However, this is still short of the 100 line that marks more optimism than pessimism.
Households reported improvements in both current and future expectations, but many still prioritize predictable cash flow and rebuilding savings buffers due to economic conditions remaining sluggish. The Reserve Bank of New Zealand's rate hikes have put a strain on budgets, with fuel, groceries, and mortgage payments taking a big bite out of household finances.
Westpac's 89.5 reading suggests that big purchases may remain on hold as households cut back on 'nice-to-haves' to protect their budgets. This can lead to slower hiring in customer-facing jobs and uneven economic recovery across regions.