NZ Consumer Confidence Drops as Recovery Stalls in July

The ANZ-Roy Morgan Consumer Confidence index fell to 94.7 in July from 98.8 in June, continuing its recent volatile trend and signaling persistent economic weakness.

The decline points to a sluggish recovery from last year’s recession, with weakening activity indicators and possible contractions in both GDP and employment in the June quarter.

Consumer spending remains soft, as the share of households saying it’s a good time to buy a major item fell to -8, while the housing market continues to stagnate.

Inflation expectations rose to 5.1%—the highest since April 2023—driven by rising costs in essentials such as food, insurance, and utilities.

Perceptions of personal finances and economic conditions deteriorated further, weighing on future sentiment.

However, easing mortgage rates and strong farm incomes may offer some support in the coming months, potentially paving the way for RBNZ rate cuts to aid the recovery.