NZ ANZ-Roy Morgan consumer confidence remains little changed in August; households cautious on economic outlook

New Zealand’s Consumer confidence remains about par, according to the ANZ-Roy Morgan consumer confidence Index, which was unchanged in August at 118, around the historical average. The Current Conditions Index fell 1 point to 124 in August, while the Future Conditions Index was unchanged at 114, below its long-run average (122).

Consumers’ perceptions of their current financial situations slipped 2 points, with a net 12 percent feeling financially better off than a year ago. A net 26% of consumers expect to be better off financially this time next year, up 1 point.

A net 35 percent say it’s a good time to buy a major household item, down 1 point but still solid. Perceptions regarding the next year’s economic outlook eased another point to +2 percent, the lowest reading since October 2015. The five-year outlook also dipped 1 point, to +13 percent. Wellington is by far the most confident region at 131 (-1 point), ANZ Research reported.

Confidence fell 2 points in Auckland to be in last place at 113. Expectations for national house price inflation eased from 3.7 percent to 3.4 percent y/y, with the bounce losing steam. The South Island ex-Canterbury is in the lead at 4.8 percent, while Canterbury is weakest at 2.4 percent. General inflation expectations ticked up a smidgen to 4.0 percent – they have been fairly steady around these levels since taking a step up in March.