New Zealand: Consumer confidence worsens in April
Latest reading: The ANZ-Roy Morgan consumer confidence indicator fell further to 80.3 in April, following March’s 91.3. The latest reading was the lowest in about three years, with the index down 20 points over the past two months since the Middle East conflict began.
In April, households became more negative across most major components. Perceptions of current personal financial situations fell to -31 from -20 in March, the weakest since mid-2008, while expectations for personal finances over the next 12 months declined to +3 from +10. Households also grew more pessimistic about the general economic situation over the next 12 months and the next five years. Willingness to make large purchases deteriorated further to -25 from -14, the weakest reading since September 2024.
Panelist insight: On the data, ANZ analysts said:
“The conflict in the Middle East has created significant uncertainty for the economic outlook and is hitting people in the back pocket already. Confidence impacts are likely to exacerbate the impact on growth, but it is entirely reasonable that both firms and households think twice when making spending decisions in case things take a marked turn for the worse. The sharp rise in inflation expectations is also unsurprising.”