New Zealand: Consumer confidence increases in January
Latest reading: Consumer confidence indicator went up to 107.2 in January, following December’s 101.5. The latest reading was above the threshold of 0 that separates optimistic from pessimistic sentiment and was the highest since August 2021.
In January, households grew more positive about the general economic situation in the next 12 months (-0.7 vs -6.2 in December), the economic outlook 5 years ahead (+11.9 vs +10.8 in December), their willingness to make large purchases (+1.0 vs -1.0 in December) and their personal financial situation over the next 12 months (+29.4 vs +22.0 in December).
Panelist insight: On the outlook, ANZ analysts said:
“There is a mix of headwinds and tailwinds facing the economy that in our view will add up to ‘par’ growth this year. Headwinds include rising interest rates, a stronger NZD, high inflation in necessities, and uncertainty from the election and ongoing global turbulence. These are going up against tailwinds: interest rates are still estimated to be at stimulatory levels, private sector balance sheets are generally sound, and business confidence and investment and employment intentions are much stronger. The housing market is going nowhere fast, but the steady improvement in consumer confidence seen in recent months will offer retailers hope that the pickup seen at the end of last year will persist.”