NZ Consumer Confidence Dips Amid Rising Costs

The Westpac McDermott Miller Consumer Confidence Index in New Zealand rose to 96.5 in the fourth quarter of 2025 from 90.9 in the previous period, marking the highest of the year, but remaining just below long-run averages. The increase reflects easing borrowing costs and seasonal cheer, as large numbers of borrowers roll onto lower fixed mortgage rates and households feel some relief at the end of the year. According to Westpac, households are more optimistic about the economy’s trajectory and spending appetites have lifted, supported by lower interest costs and improving sentiment. The survey also noted that the labour market shows some improvements even though job creation remains limited. Regional results were mixed but broadly stronger, with Auckland among the most upbeat areas. These factors, together with firmer commodity prices, suggest that consumer confidence has strengthened heading into 2026 while still short of fully recovered levels.

The Westpac McDermott Miller Consumer Confidence Index in New Zealand edged lower to 90.9 in the third quarter of 2025 from 91.2 in the previous period, still remaining at historically weak levels. The decline reflects ongoing pressures on households as rising living costs and economic uncertainty weigh on sentiment. According to Westpac, the economy has hit a mid-year soft patch, with higher expenses limiting confidence even as borrowing costs ease. The survey also highlighted weakness in the job market and continued softness in house prices as key concerns. These factors, combined with cost-of-living challenges, suggest that consumer confidence in New Zealand remains fragile.

The Westpac McDermott Miller Consumer Confidence Index in New Zealand rose to 91.2 in the June quarter of 2025, up from 89.2 in the prior period, though still well below its long-run average. The latest reading was shaped by mixed domestic growth and major geopolitical uncertainties, alongside ongoing cost-of-living pressures on households facing higher food, insurance and utility bills. The ‘good time to buy’ measure climbed from –15.6 to –9.5, signaling a modest rebound in willingness to purchase big-ticket items. Confidence was weakest in Wellington at 77.9, while Southland led at 96.8—buoyed by firm commodity prices and a pickup in international tourism.