Consumer confidence has fallen for the second consecutive month in the latest ANZ-Roy Morgan poll - but it is unclear if recent global market volatility is the reason. The measure fell six points in July.
While off its recent peak of 131.4 in January, the overall level of household
sentiment remains positive at 115.6 but is the lowest reading in almost a year.
"The labour market may be improving, but there are plenty of other influences working in the opposite direction. It looks like households will remain cautious with their spending for a while," ANZ said, citing sluggishness in the housing market and price hikes for electricity and petrol as other factors affecting sentiment.
"There are certainly positives out there, including an improving labour market, which official figures out in two weeks' time will no doubt show. Longer term fixed mortgage rates have fallen, and tax cuts are getting ever closer. But it seems the negatives are outweighing the positives at present," ANZ said.
An increase in respondents thinking it is a good time to purchase a major household item last month was reversed. While the current reading, plus-22, is consistent with a pick-up in retail spend, it is not pointing to surge the sector had been hoping for.
- NZPA
