Consumer Confidence Slowly On The Rise

August 30,2024

Quarter 2 showcases challenges in Retail sector

Consumer confidence 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, still sitting below 100, which indicates ongoing pessimism amongst consumers.

“Its great to see consumer confidence to continue to lift, while consumer confidence remains subdued, we are heading in the right direction” says Carolyn Young, Chief Executive, Retail NZ.

“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, will have both contributed to the increase in August. We continue to see more confidence from consumers without mortgages than those with mortgages. While 17% of respondents to the survey felt they would be better off next year, 23% 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.”

While it feels like the news is more of the same that we have seen for the last couple of years, the slight increase in confidence will hopefully provide some momentum in the economy over the next few months to help provided momentum into that critical last quarter of the year for retailers.

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