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Scoop
10 hours ago
- Business
- Scoop
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.' Advertisement - scroll to continue reading '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.
NZ Herald
14-05-2025
- Business
- NZ Herald
Retail spending flat in April as Kiwis keep wallets closed
Durables also reported a slight increase in spending, with spending in the category up 0.1% or $0.9m. Reflecting the wider retail industry players reporting tough winter apparel sales, spending in the category declined in April, down by 1.9% or $6m. Services, including repair and maintenance, personal care, funeral and other personal services reported a spending decline of 0.3% or $1.1m. Spending in the non-retail (excluding services) category also decreased in April, down by 1.5% or $33m compared to March. That category included medical and other healthcare spending, travel and tour arrangements, postal and courier delivery and other non-retail industries. The total value of electronic card spending, including the two non-retail categories (services and other non-retail), decreased from March by 0.2% or $18m. In actual terms, cardholders made 158 million transactions across all industries in April 2025, with an average value of $55 per transaction. The total amount spent using electronic cards was $8.7 billion. Wallets closed Westpac senior economist Satish Ranchhod said Kiwis were still hesitant to spend despite falls in interest rates. 'In part, some of the softness in spending was due to falls in petrol prices, with fuel spending down 2% over the month. However, that fall in fuel prices should have put more money back into people's pockets to spend elsewhere,' Ranchhod said. He said spending on groceries had continued to rise in the month, up 0.5%. However, Ranchhod is confident that spending will increase towards the later half of the year. 'Today's soft result reinforces the picture of subdued domestic demand in the early part of the year. 'Around half of all mortgages will come up for repricing over the next six months, and many borrowers will be able to refix at much lower rates. 'The related increases in disposable income levels is set to boost spending from mid-year.'
