Consumer confidence across New Zealand/Aotearoa has improved again in August for the second month in a row, but it is still a long way off average levels of the last decade.
The ANZ-Roy Morgan consumer confidence index rose to 92.2 from 87.9 in July, but is still sitting below 100, which indicates ongoing pessimism amongst consumers according to Retail NZ.
“It’s great to see consumer confidence continue to lift, while consumer confidence remains subdued, we are heading in the right direction” Retail NZ CEO Carolyn Young said.
“In the last month, we have seen working New Zealanders enjoy small tax breaks and the cutting of the Official Cash Rate has seen banks decrease interest rates, which have both contributed to the increase in August.
“We continue to see more confidence from consumers without mortgages than those with mortgages. While 17 per cent of respondents to the survey felt they would be better off next year, 23 per cent felt it was not the right time to buy a major household item.
“Retailers selling discretionary or durable goods will continue to have some tough times ahead.”
Retail NZ added that while it feels like the news is more of the same, the slight increase in confidence will hopefully provide some momentum in the economy over the next few months to help provide momentum into that critical last quarter of the year for retailers.