A net 23% of ANZ-Roy Morgan respondents said it was a bad time to buy a major household item.
“Consumer confidence remains quite subdued, as any retailer could tell you, particularly those selling discretionary or durable goods,” ANZ economists said today.
“Our business outlook survey yesterday showed retailers are hopeful of better times ahead, but consumers are going to take a bit more convincing to spend,” the bank said.
“Meanwhile, those with mortgages are generally more downbeat about their current financial situations, but there isn’t a big difference regarding expectations about the next year.”
ANZ said house price expectations seemed to be finding a floor, and were fairly flat in Auckland and Canterbury.
“Consumers are feeling a little better on the whole. Interest rates are falling, but it’s because the economy in recent months has been weaker than the Reserve Bank and other punters expected.
“For the person on the street, things are still likely to feel worse before they feel better, due to the fact that the labour market lags the broader economic cycle by around six months, and an increase in unemployment over the rest of the year looks pretty baked in,” ANZ said.
“But the seeds of the recovery have now been sown, and it’s possible that the recovery could be a little more vigorous than is generally anticipated.
”This recession has been very nasty, no question, but it has been atypical in that it is been very much driven by higher interest rates,” the bank said.
