28.08.202522:21:00UTC+00New Zealand Consumer Morale Falls Amid Weak Retail Sentiment

In August, the ANZ-Roy Morgan Consumer Confidence index dropped by 3 points to 92, marking its lowest point in the past 10 months. The future conditions index experienced a decrease of 2 points, landing at 98.8, while the current conditions index fell by 3 points to 81.8. Household assessments of personal financial situations further deteriorated, decreasing by 3 points to -24%. Moreover, a net 12% of respondents expressed that it was an unfavorable time to purchase a significant household item, a decline of 4 points, highlighting challenges for retailers. Additionally, economic outlook indicators declined, with the 12-month perspective dropping 4 points to -20% and the five-year forecast decreasing by 4 points to +3. Projections for CPI inflation two years ahead have lowered slightly from 5.1% to 4.8%, while expectations for house prices remained consistent at 3.5%. Despite these declines, factors like lower real interest rates and the Reserve Bank of New Zealand's (RBNZ) dovish stance offer some level of support; however, consumer sentiment and retail spending are anticipated to stay subdued in the short term.