Photo: 123RF
Consumer confidence has dropped back from last month’s four-year high.
February’s ANZ-Roy Morgan Consumer Confidence index is well down from last month’s 107 points, but still remains in positive territory at 100 points. Anything under 100 is considered negative.
- Consumer Confidence falls to 100.1 points from 107.2 points in January
- A net negative 4 percent of households think it is a good time to make a major purchase
- Wellingtonians the most negative
- A net 20 percent expect to be better off this time next year, down from last month’s net 29 percent.
Confidence fell sharply in Wellington and Auckland and the mood has turned negative when it comes to feeling like it’s a good time to buy a major household item, though the reading was still well above last year’s levels.
ANZ chief economist Sharon Zollner said consumer confidence gave up much of its recent gains, with higher fixed mortgage rates and stubborn inflation weighing on sentiment.
“In a long-term historical comparison consumer confidence remains subdued, but one month of retracing a particularly sharp gain doesn’t mean the trend has changed,” she said.
“Recoveries seldom happen in a straight line and the upward trend across many of these indicators remains intact.
“While there is still residual support coming through from past monetary easing, stagnant house price momentum, a loose labour market, and lingering cost-of-living pressures mean it’s still tough going out there for many households.”
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