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New Zealand Confidence Jumps: Consumers Turn Optimistic as Business Hits 30-Year High

ANZ says forward indicators are strengthening, with tighter financial conditions a potential brake.

Overview

  • The ANZ-Roy Morgan consumer confidence index rose to 101.5 in December from 98.4 in November, its highest since September 2021 and above the optimism threshold of 100.
  • ANZ-Roy Morgan data showed a lift in discretionary card spending, and local coverage noted inflation expectations eased in December but remain above recent CPI inflation.
  • An ANZ business survey reported confidence at the strongest level in three decades, with a net 73.6% expecting the economy to improve and 60.9% expecting their own firms to grow.
  • ANZ Chief Economist Sharon Zollner said mortgage holders are more willing to spend as interest rates have cycled, with interest rates and the exchange rate well below earlier peaks.
  • ANZ cautioned that tighter financial conditions or shifts in interest-rate expectations could slow the recovery, making upcoming policy signals a key influence on sentiment.