New Zealand: Consumer confidence ticks up in May but remains subdued
Latest reading: The ANZ-Roy Morgan consumer confidence indicator lifted to 86.5 in May, following April’s 80.3. The latest reading marked a small recovery from recent lows, though the index was still down 21 points from its January peak and remained well below levels seen before the Middle East conflict began.
In May, households became less negative across most major components. Perceptions of current personal financial situations improved, likely assisted by easing petrol prices, while expectations for personal finances over the next 12 months also rose. Households became less pessimistic about the general economic situation over the next 12 months, while the five-year economic outlook edged down. Willingness to make large purchases improved but remained limited.
Panelist insight: On the data, ANZ analysts said:
“The bounce in consumer confidence appears likely to be related to the small decline in petrol prices this month. But confidence remains well down on where it was before the Middle East conflict. Not only are higher petrol prices hitting weekly budgets; concern about the broader economic outlook is also evident. The outlook for global oil prices remains very clouded, leading to uncertainty around inflation, interest rates and the labour market.”