New Zealand: Consumers grow more pessimistic in November
The ANZ-Roy Morgan consumer confidence indicator fell to 96.6 in November from October’s 98.0. Consequently, the index moved further below the 100-threshold that separates optimism from pessimism among consumers and recorded the worst reading since April 2020.
November’s result was driven by consumers’ deteriorating confidence with regards to the one-year and five-year general economic outlook. Moreover, households’ expectations of their financial situation in one year view turned less optimistic. Additionally, consumers’ willingness to buy big-ticket items remained entrenched in negative terrain.
Commenting on the release, Sharon Zollnern analyst at ANZ, stated:
“Enthusiasm for purchasing is dropping away as higher mortgage rates, stretched affordability, macroprudential restrictions bite and FOMO (fear of missing out) wanes.”