New Zealand’s ANZ-Roy Morgan consumer confidence remains steady in May, slightly above historical average

New Zealand’s ANZ-Roy Morgan consumer confidence Index remained steady at 121 in May. This is just above the average of the series since its inception in 2004. On a seasonally adjusted basis, the index rose 1 point to 122.

The Current Conditions Index rose 2 points to 124.6 in May, while the Future Conditions Index was broadly unchanged at 118.5. Both are trending more or less sideways. Consumers’ perceptions of their current financial situation bounced back 4 points to a net 13 percent feeling financially better off than a year ago.

A net 27 percent of consumers expect to be better off financially this time next year, up 2 points. A net 36 percent say it’s a good time to buy a major household item, down 1 point from April. This remains at a strong level and should support durables spending.

Perceptions regarding the next year’s economic outlook eased a further point to 12 percent, around its December low. The five-year outlook also dipped 1 point from 18 percent to 17 percent, the lowest since May 2017.

Confidence fell 5 points in Auckland – this is now the least confident region, with the rest of the North Island also relatively subdued. South Island confidence rebounded strongly, and Wellington confidence is high.

National house price expectations dipped from 4.1 percent to 3.7 percent and remain strongest amongst Wellingtonians (4.3 percent). Inflation expectations were all but unchanged at 3.9 percent.

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