NZ Consumer Confidence Rebounds, But Households Remain Cautious
New Zealand consumer confidence has made a significant recovery in the September quarter, according to the latest Westpac McDermott Miller survey. The Consumer Confidence Index climbed 9.1 points to 89.5, up from 80.4 in June, marking a sizeable rebound after confidence fell to a three-year low earlier this year.
The current level remains well short of the ten-year average of 97.2, with pessimists still outnumbering optimists nationwide. Westpac attributed the improvement partly to falling petrol prices and continued strength in export industries supporting incomes in several regions.
However, households remain cautious, with most reporting that their financial position has worsened over the past year. The current financial situation measure sits at -29.5, well below its ten-year average of -14.8. Rising living costs, a soft labour market, and higher mortgage rates continue to squeeze households.
The Reserve Bank lifted the official cash rate by 25 basis points to 2.75% in September, with floating mortgage rates rising between 0.25 and 0.35 percentage points in response. Households have cut back on dining out and entertainment, and around 30% said they've adjusted spending on groceries.