New Zealand: Consumer confidence declines in October
Latest reading: Consumer confidence went down to 92.4 in October, following September’s 94.6. As a result, the index moved further below the 100-threshold, indicating greater pessimism among consumers.
In October, households grew less optimistic about the economic outlook 5 years ahead (+4.2 vs +6.1 in September), their willingness to make large purchases (-14.0 vs -11.4 in September) and their personal financial situation over the next 12 months (+9.0 vs +14.0 in September). In contrast, households grew more upbeat about the general economic situation in the next 12 months (-22.3 vs -23.1 in September).
Panelist insight: On the data, ANZ analysts said:
“Consumers remain in a cautious mood, and grim economic headlines appear to be reinforcing that sentiment. However, under the surface, there are signs of resilience: consumer arrears have been declining (according to credit rating agencies), employment has returned to modest growth, and retailers are reporting improved activity. This is supported by our card spending data, which shows a return to growth across a broad range of discretionary categories.”