The ANZ-Roy Morgan Consumer Confidence Index experienced a notable increase in April, climbing 5 points to reach 98.3, its highest level since December. This uptick reinforces a recovering trend that had previously begun to waver. This improvement was broad-based, with both the current conditions index and the future conditions index rising by 6 and 4 points, respectively. Remarkably, perceptions of personal financial situations saw a substantial improvement, increasing by 8 points. Moreover, a net 23% of participants anticipate being better off next year, marking an increase of 7 points.
Despite a 5-point improvement in sentiment regarding the purchase of major household items, this area remains muted with a net -11%, indicative of persistent retail challenges. Inflation expectations saw a sharp rise of 0.5 points, reaching 4.7%, their highest since July 2023, likely impacted by global tariff discussions. Nevertheless, the anticipated domestic inflationary impact in New Zealand is expected to remain restricted.
Overall, the increase in consumer confidence indicates heightened optimism; however, the elevated inflation expectations might pose challenges to the broader economic outlook.
