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DECEMBER 2017
The Westpac : McDermott Miller NZ Consumer Confidence Index for December 2017 is
107.4
WESTPAC
: McDERMOTT MILLER
CONSUMER
CONFIDENCE SURVEY
19 December 2017
Excerpt for Joint Westpac: McDermott Miller
MEDIA
RELEASE
“Consumer
confidence in New Zealand fell sharply this December quarter, (down 5.0 points
to 107.4 on the Westpac McDermott Miller Consumer Confidence index)” announced
Richard Miller, Managing Director of McDermott Miller Limited. “The country
remains optimistic, but consumers seem to have been shaken by the election, and
are more cautious about the immediate economic future”.
“Uncertainty
expressed by consumers in the September quarter, immediately prior to the
general election, appears to have translated this December quarter into concern
about the short and medium term economic outlook for the country and its
consequences for personal and household income” stated Richard Miller. “This
applies across almost all consumer groups” he noted. ”When probed about the reasons
why they thought they would be worse off in a year’s time, the main reason
expressed was definite concerns over inflation and rising cost of living
amongst consumers, but change of government was also top of mind:
o
Main reason for NZ having mainly GOOD economic
times over next 12 months: 36% consumers gave ‘effective government policies’
and 39% ‘results of election’;
o
Main reason for NZ having mainly BAD
economic times over the next 12 months: 35% ‘wrong government economic
policies” and 31% ‘results of election’.”
“The
usual geographical contrast in confidence between relatively optimistic
Auckland consumers and less optimistic consumers in the rest of New Zealand has
also been shaken this quarter” said. Richard Miller “Auckland’s CC Index is
down 9.3 points to 107.5 and the rest of New Zealand down only 4.1 points to
107.3.”
“Another
unexpected contrast in consumer sentiment to emerge this quarter is that
Auckland, the major commercial centre in Auckland, is less optimistic than
Wellington” noted Richard Miller, “CC Indexes are down respectively 9.3 to
107.5 and 2.4 to 109.8.”
“The immediate upshot of these changes
in sentiment is that consumers will be cautious about spending with just 29% of
them in the December survey believing ‘now is a good time to buy major
household goods’ “stated Richard Miller.
“Christmas shopping this year may be somewhat muted, with consumers
choosing to “bank it rather than spend it” he concluded.
<ENDS >
19 December 2017
Richard Miller, Managing Director
McDermott Miller Limited
Tel: 04 471 8500
Mobile: 027 451 0158
Index Background
The
Consumer Confidence Index is based on a survey of a representative sample of 1555 New
Zealand households interviewed during 1-10 December 2017. It analyses answers to five standard
questions on personal financial circumstances, expectations for the economy and
attitude to buying substantial household items. Index scores measure consumer
confidence in the economy, with a score of greater than 100 showing more
optimism than pessimism and vice versa for a score below 100 (for more
information see Survey
Specifications).
Acknowledgement
The Westpac : McDermott Miller
Consumer Confidence Survey and Index is owned by McDermott Miller Limited. Westpac : McDermott Miller should be acknowledged as the
source when citing the Index, just as Westpac-Melbourne Institute should be
acknowledged when citing the Australian Index of Consumer Sentiment. Graphs
supplied may be reproduced by the news media provided the Westpac
: McDermott Miller logo remains inset.