Latest news with #ANZ-RoyMorganConsumerConfidence
Otago Daily Times
6 days ago
- Business
- Otago Daily Times
Consumer confidence up despite inflation worries
Image: RNZ Consumer confidence is improving but the economic outlook remains soft, with inflation expectations rising to the highest level in more than two years. The ANZ-Roy Morgan Consumer Confidence lifted six points to 98.8 in June, following last month's drop to 92.9. ANZ chief economist Sharon Zollner said a number of key indicators remained in negative territory, including the proportion of households who thought it was a good time to buy a major household appliance, at -7. In addition, annual inflation expectations rose slightly to 4.9 percent - the highest level since April 2023. "A few potential explanations seem possible," she said, including global tariff noise and concerns about energy prices. She said the increase was in line with food price inflation, which was running at 4.4 percent. "Household electricity prices are also rising as higher lines charges are passed on." However, she said a net 20 percent of consumers expected to be better off this time next year. "The economy is recovering. It's just taking a little longer than expected. "Households might be sceptical but domestic inflation is on the retreat, and that should lay the path for the RBNZ [Reserve Bank] to ultimately be able to shore up the economic recovery with a little more monetary easing."
RNZ News
23-04-2025
- Business
- RNZ News
Consumer confidence rises despite concerns over higher inflation
Photo: RNZ Consumer confidence remains subdued despite an improvement in April, but household inflation expectations have soared amid the US-led tariff war . The ANZ-Roy Morgan Consumer Confidence index rose 5 points in April to 98.3, meaning pessimists continued to outweigh optimists. A reading above 100 indicated optimism. Inflation expectations jumped 0.5 percentage points to 4.7 percent, the highest reading since July 2023. "It may be related to global tariff talk, but since New Zealand is not putting on new tariffs, global developments are unlikely to be inflationary here," ANZ chief economist Sharon Zollner said. She said household inflation expectations mattered less for the inflation outlook than business inflation expectations. "But all else equal, when households are expecting high inflation, that can boost wage demands and make it easier than otherwise for firms to raise their prices," Zollner said. More people continued to feel it was a bad time to buy a major household item, but sentiment improved. "It's still a long way from suggesting good times for the retail sector," Zollner said. A net 23 percent of households expected to be better off this time next year - an improvement of 7 points, and perceptions of current personal situations improved. "It's good to see that New Zealand consumers so far appear to be relatively unfazed by the recent bout of global volatility," Zollner said. "In the bigger picture, though, consumer confidence remains subdued, and this is dampening the outlook for the retail sector." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
