New Zealand households remain upbeat despite decline in confidence

Data released earlier on Monday showed that New Zealand Westpac McDermott Miller consumer confidence index fell 3.7 points to 106 in the June quarter, below the long-run average of 111.5. The presented conditions index was down 1.7 points to 110, while the expected conditions index dropped five points to 103.3.

Details of the survey showed respondents were less pessimistic about their current financial situation, with a net 1.3 percent saying it was worse than a year earlier, compared with 3.2 percent in March. Low-interest rates and a solid economy are probably supporting sentiment. A net 4 percent expect their situation to improve over the coming year, down from 6.5 percent, while a net 21.4 percent said now was a good time to buy, down from 26.7 percent in March, and below the long-run average of 26.5 percent.

Westpac Banking Corp senior economist Satish Ranchhod said the increase in population has provided a buffer from headwinds facing the economy but that hasn't stretched to households.

Westpac data was in contrasts to last week's monthly ANZ-Roy Morgan Consumer Confidence Index, which recorded a rise of 3 points compared to May. It also follows government figures last week which showed NZ GDP expanded 0.7 percent in the March quarter, beating estimates.