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Westpac McDermott Miller Consumer Confidence June 2025
The Westpac McDermott Miller Consumer Confidence index rose two points in June, taking it to a level of 91.2. That's a modest rise after the sharp fall we saw last quarter, and leaves consumer confidence a fair bit below average levels (Note: A level below 100 indicates that there are more households who are pessimistic about the economic outlook than those who are optimistic).
'It's been a bumpy and uncertain few months, and many New Zealand households are feeling nervous about the economic outlook,' said Westpac Senior Economist Satish Ranchhod. 'Domestically, economic conditions have remained mixed. At the same time, increased global tensions and the related volatility in financial markets are casting long shadows over the outlook.'
'Cost of living pressures continue to be a big concern for many households, particularly those on lower incomes,' noted Mr Ranchhod. 'Recent months have seen large increases in the cost of essentials like food and utilities. Consistent with that, many households have told us that their financial position has deteriorated over the past year.'
'However, it's not all bad news for households,' said Mr Ranchhod. 'Since mid-2024 there have been some big drops in interest rates. While it will take time for those cuts to pass through to borrowers, many households' will see a boost to their disposable incomes over the coming months. In some cases, the drop in their borrowing costs could be substantial, with some fixed mortgage rates down around 200bps compared to this time last year.'
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'Much like the weather, confidence remains soggy right across the country. However, there are some big differences across regions,' noted Mr Ranchhod. 'Confidence remains in the doldrums in Wellington. In contrast, households are more upbeat in regions that have a strong rural backbone or tourism ties, especially in the lower South Island.'
'Looking across the different demographic groups, all but those on the highest incomes remain firmly pessimistic. Men's confidence has remained steady this June quarter, with an index score of 96.5 (a drop of 0.9 points from last quarter), while women's confidence has lifted to 86.4 (up 5 points). More women than men feel worse off financially now compared to a year ago, while men are more optimistic than women about New Zealand's short-term economic future, as well as the country's longer-term prospects,' commented Imogen Rendall, Market Research Director of McDermott Miller Limited.
'Confidence amongst younger people this quarter has taken a hit and is now on a similar level to older New Zealanders, with all age groups now firmly pessimistic,' noted Ms Rendall.
'Looking at those in paid work, confidence has increased slightly by 3.4 points this quarter up to 95.1, while those not in paid work saw almost no change from last quarter (up just 0.6 points to 85.6). One in five of those in paid work feel they are better off financially now than a year ago, compared to fewer than one in 10 of those who are not in paid work,' observed Ms Rendall.
The survey was conducted over 1-12 June 2025, with a sample size of 1,550. An index number over 100 indicates that optimists outnumber pessimists. The margin of error of the survey is 2.5%.
Acknowledgement
The Westpac McDermott Miller Consumer Confidence Index is owned by McDermott Miller Limited. Westpac McDermott Miller should be acknowledged as the source when citing the Consumer Confidence Survey and Index. Graphs supplied may be reproduced by the news media provided Westpac McDermott Miller is acknowledged as the source.
