NZ: Consumer sentiment eased in July - ANZ

Cameron Bagrie, Chief Economist at ANZ, notes that the NZ’s onsumer sentiment still had a spring in its step in July as the ANZ-Roy Morgan Consumer Confidence Index eased from 127.8 to 125.4; that’s still the second highest result in the past five months.

Key Quotes

“It also remains well above its long-run average of 119. Once we adjust for the seasonality at this time of year as the cooler months often bring the same for sentiment, the index rose one point to its highest level since September 2014.”

“In terms of the details, the Current Conditions Index fell 4 points to 124.9 while Future Conditions dipped 1 point to 125.8. Again, the story was stronger in seasonally adjusted terms, with current conditions only falling 2 points and future conditions rising 3. 

• Consumers’ view of their own financial position tip-toed from +14 to +10. Views regarding their own financial situation in 12 months’ time were little changed at +32 (+33 previously). 
• A net 39% believe it’s a good time to buy a major household item. That’s down from 45% in June but still high.
• Perceptions towards the economic outlook remain strong. Net optimism towards the economy one year out dipped from +25 to +23, which is neither here nor there, and when assessing the five-year economic outlook, optimism held at +23, which is well above the average since 2015.”