New Zealand: Consumer confidence falls in January
Latest reading: Consumer confidence came in at 96.0 in January, down from December’s 100.2. As a result, the index fell below the 100-threshold separating pessimism from optimism among consumers.
Consumers grew more downbeat about both current and future conditions in January, and less willing to buy large items. The January confidence data fits with our panelists’ projections for only mild private consumption growth in Q1 as a whole.
Panelist insight: On the data, ANZ analysts said:
“The most relevant question for retailers is whether people think it’s a good time to buy a major household item. […] this [subsector] dipped in January both amongst people with mortgages, and those without. The indicator is well off its lows and likely still trending higher, but this month’s fall is a reminder that the environment for retailers is likely to remain patchy and challenging for some time yet.”