Latest news with #SharonZollner
RNZ News
2 days ago
- Business
- RNZ News
High food prices, 'tariff noise' cast shadow over consumer confidence
Photo: RNZ Consumer sentiment has soured amid tariff-induced economic uncertainty and rising food prices. The ANZ-Roy Morgan Consumer Confidence Index fell 5 points fell in May to 92.9 - a reading below 100 means overall sentiment remains pessimistic. It comes after business confidence fell for the third month in a row . The fall in consumer sentiment erased gains from April . ANZ chief economist Sharon Zollner said it was the first consumer survey where most people answered after the start of "tariff noise". "That could be a factor," she said. "Also, we're experiencing quite high food price inflation at the moment and that tends to go down very badly with consumers." Perceptions about the outlook for the economy over the next 12 months fell 4 points to a net negative 20 percent - indicating most people thought the economy would see bad times financially. A net 10 percent of people felt it was a bad time to buy a major household item, a key indicator for the retail sector. "While that did lift 1 point, it's still a long way from suggesting happy days for the retail sector," Zollner said. Other questions in the survey showed a net 12 percent expected to be better off in a year's time, down 11 points. Household inflation expectations were largely steady, only easing 0.1 percentage points to 4.6 percent. "That's a lot higher than a couple of months ago, with the jump possibly caused by global tariff talk, though household inflation expectations can also be sensitive to food prices," Zollner said. "Household inflation expectations don't have a tight correlation with actual inflation outcomes," Zollner said. "But the perception that inflation is going to be so high is likely to contribute to the sense of a cost of living crisis, potentially dampening spending, if anything." ANZ continued to expect the Reserve Bank to cut interest rates three more times this year, lowering the Official Cash Rate to 2.5 percent. "Our best judgement is that the RBNZ will end up just shoring up the recovery because it's nothing flash at the moment," Zollner said. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Reuters
2 days ago
- Business
- Reuters
New Zealand consumer confidence falls in May
May 30 (Reuters) - Consumer confidence in New Zealand fell in May, with stubbornly high inflation expectations holding back purchasers, ANZ-Roy Morgan data showed on Friday. "Household inflation expectations don't have a tight correlation with actual inflation outcomes," said ANZ chief economist Sharon Zollner. "But the perception that inflation is going to be so high is likely to contribute to the sense of a cost-of-living crisis, potentially dampening spending, if anything." The consumer confidence index fell to 92.9 in May from 98.3 in April. A reading above 100 shows optimism, while below that indicates pessimism. Consumer inflation expectations eased by 0.1%, but remained elevated at 4.6%.
RNZ News
3 days ago
- Business
- RNZ News
Business confidence drops three months in a row
An EFTPOS card being swiped at a terminal. Photo: 123RF Business confidence has retreated for a third month in a row as businesses struggle to recover costs, and uncertainty over trade policies overshadowed signs of an improving economy. ANZ's monthly sentiment headline measure fell 12 points to a net 37 percent of firms expecting an improvement in the year ahead. While the more closely followed measure of businesses' own outlooks dropped 13 points to 35 percent. Chief economist Sharon Zollner said the survey still pointed to a recovering economy, but with headlines obscuring some of the positives. "The economy is recovering, but it's still hard going here and now, and that it's still difficult to pass cost increases through to prices." Zollner said a slight rise in inflation expectations to 2.71 percent was marginal, while firms expected a 2.5 percent rise in costs over the next few months but to be able to raise their prices by 1.7 percent. "Overall, there are not any obvious grounds for the RBNZ to be overly concerned about the recent tick higher in some surveys of inflation expectations." The survey showed firms expecting weaker profits, to invest less and pull back on hiring. Zollner said there was plenty of scope for volatility sparked by tariff policies to change firms' opinions and activity, but for the time being the Reserve Bank had scope for more rate cuts to help the economy. "We expect the RBNZ will ultimately take the Official Cash Rate to a low of 2.5 percent to shore up the economic recovery as it faces into global headwinds."
RNZ News
4 days ago
- Business
- RNZ News
Watch live: Christopher Luxon on what Budget 2025 means
Prime Minister Christopher Luxon will provide fresh insights into last week's Budget, when he speaks to a business audience at the ANZ Breakfast event in Wellington. Luxon will on Wednesday share what he sees as the Budget's key initiatives and the government's policy priorities. He is being joined at the forum by ANZ NZ chief executive Antonia Watson and ANZ NZ's chief economist Sharon Zollner. Watch the livestream and follow RNZ's live updates at the top of this page.
RNZ News
4 days ago
- Business
- RNZ News
Watch live: Sharon Zollner, Christopher Luxon on what Budget 2025 means
Prime Minister Christopher Luxon will provide fresh insights into last week's Budget, when he speaks to a business audience at the ANZ Breakfast event in Wellington. Luxon will on Wednesday share what he sees as the Budget's key initiatives and the government's policy priorities. He is being joined at the forum by ANZ NZ chief executive Antonia Watson and ANZ NZ's chief economist Sharon Zollner. Watch the livestream and follow RNZ's live updates at the top of this page.
