NZ Consumer Confidence down 16pts to a record low of 81.7 in February as COVID-19 cases increase rapidly

New Zealand Consumer confidence was down 16pts to a record low of 81.7 in February.

• The proportion of people who believe it is a good time to buy a major household item fell 17 points to -21.
• Inflation expectations were little changed at 5.6%. House price inflation expectations eased from 5.3% to 4.8%.

Turning to the detail:

• Perceptions of current personal financial situations fell 14 points to -18%.
• A net 2% expect to be worse off this time next year, down 12. That’s the first time that series has ever been in the red.
• Households think it’s a terrible time to buy a major household item (-21, down 17 points). This is the best retail spending indicator in the survey.
• Perceptions regarding the next year’s economic outlook fell 21 points to -42%, not as low as when COVID first reached NZ. The five-year outlook fell 11 points to -8%.
• House price inflation expectations eased 0.5%pts to 4.8% - unchanged in Auckland but lower everywhere else.
• CPI inflation expectations eased 0.2%pts to 5.6%.

Households’ response to whether it was a good time to buy a major household item held up in the South Island but plummeted in the North. By age, older demographics held up better.

For comments or more information please contact:
Roy Morgan - Enquiries
Office: +61 (03) 9224 5309
askroymorgan@roymorgan.com