New Zealanders Are Hitting The Town Again As The Economic Recovery Gains Traction

Westpac McDermott Miller Consumer Confidence, June quarter 2021

The Westpac McDermott Miller Consumer Confidence Index rose 1.9 points in the June quarter, taking it to a level of 107.1.

“Although consumer confidence is still a little below average levels, it has now recovered most of the fall that we saw in the wake of last year’s lockdown,” said Westpac’s Acting Chief Economist Michael Gordon. “The economy is showing some solid momentum and households are feeling increasingly secure about their own financial position.”

“The lift in consumer confidence will be particularly welcome news for New Zealand’s hospitality sector,” noted Mr Gordon. “With most international travel still on hold and confidence in the economic outlook increasing, households are dialling up their spending on entertainment activities closer to home. That’s helping to offset the drag from the loss of international tourist dollars.”

“Consumer confidence in New Zealand has lifted slightly by 1.9 points since last quarter to 107.1 (an increase that is within the margin of error for the survey). New Zealand consumers are cautiously optimistic about their own and New Zealand’s economic future as the global Covid-19 situation remains unclear,” stated Imogen Rendall, Market Research Director of McDermott Miller Limited.

“All age groups are now positive, and those aged 30-49 remain the most buoyant despite a drop of 2.2 points from last quarter to 111.7. Young people have seen an increase in optimism, with a rise of 4.6 points and consumer confidence now at 110.4. In contrast, although optimism has increased 4.0 points for those aged 50 and over, this group is still uncertain about the future, with their consumer confidence at 101.4,” stated Ms Rendall.

A full description of the background and specifications of the survey are attached. The survey was conducted over 1-12 June 2021, with a sample size of 1,555. An index number over 100 indicates that optimists outnumber pessimists. The margin of error of the survey is 2.5%.

Acknowledgement

The Westpac McDermott Miller Consumer Confidence Survey and Index is owned by McDermott Miller Limited. Westpac McDermott Miller should be acknowledged as the source when citing the Index. Graphs supplied may be reproduced by the news media provided the Westpac McDermott Miller logo remains inset.

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