April readings fully incorporate the impact of Q4 GDP data
Consumer confidence in New Zealand continued its downward trajectory in April, according to the latest ANZ-Roy Morgan survey.
The Consumer Confidence Index fell by four points, settling at 82.1, which is close to the lows observed during the Global Financial Crisis, albeit slightly above the pandemic’s lowest figures.
Regional insights and inflation expectations
Wellington led the decline in confidence this month, becoming the most pessimistic region in the country. It also recorded the lowest inflation expectations and the second-lowest willingness among residents to purchase major household items.
Nationally, inflation expectations slightly eased from 4.5% to 4.4%, while expected house price inflation saw a minor increase from 3.4% to 3.5%.
See LinkedIn post here.
Economic and financial outlook
The survey detailed significant shifts in the economic outlook and personal financial situations of New Zealanders.
The Future Conditions Index, which assesses forward-looking indicators, fell sharply by 8 points to 85. However, the Current Conditions Index showed a marginal improvement, rising one point to 78.
Net perceptions of current personal financial situations improved by six points to -17%, marking a partial recovery from last month’s notable decline.
Furthermore, the outlook for the economy remains bleak, with net perceptions dropping another six points to -40% for the 12-month economic forecast.
Consumer spending sentiments
The willingness to buy major household items continued to weaken, with a net 28% of New Zealanders believing it is a bad time to make such purchases, marking a continuation of the previous month’s declining trend.
This sentiment reflects the growing caution among consumers as they navigate the current economic environment.
Long-term confidence and Inflation projections
Looking ahead, the five-year economic confidence measure also fell, down five points to -10%. Two-year-ahead CPI inflation expectations also decreased slightly, from 4.5% to 4.4%, indicating a stabilising yet still elevated expectation compared to historical averages.
April’s confidence readings fully incorporate the impact of Q4 GDP data, which confirmed a technical recession, intensifying the gloomy economic sentiment.
Read the ANZ-Roy Morgan New Zealand Consumer Confidence report here.
Compare the April figures with last month’s results here.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
