New Zealand Westpac consumer confidence dropped sharply from 92.1 to 78.7 in Q2. That’s the lowest level on record, and well below long-term average at 110.2.
Westpac said: “The pressure on household finances and sharp fall in confidence reinforces our expectations for a downturn in household spending – and economic growth more generally – over the coming months”.
“The RBNZ’s own projections show the cash rate rising to 3.9%, while financial markets have started to price in the chance that it could go as high as 4.5%…
“If there is a more abrupt slowdown in spending than the RBNZ anticipates, then it’s likely that increases in the cash rate will be more measured.”
