Consumer confidence in New Zealand continues to be low, according to the Westpac McDermott Miller Consumer Confidence Index.
The index increased by two points in the June 2025 quarter, reaching 91.2, marking a slight recovery following a decline earlier in the year.
The survey took place between June 1 and June 12, 2025, involving 1,550 participants. A value below 100 signifies that there are more households feeling pessimistic than optimistic.
“Domestically, economic conditions have remained mixed,” Westpac senior economist Satish Ranchhod said.
“At the same time, increased global tensions and the related volatility in financial markets are casting long shadows over the outlook.”
“Recent months have seen large increases in the cost of essentials like food and utilities. Consistent with that, many households have told us that their financial position has deteriorated over the past year,” Ranchhod added.
However, there are some encouraging signs with interest rates falling since mid-2024. While it will take time for the reductions to benefit borrowers, Ranchhod explained that many households can expect an increase in their disposable incomes in the coming months.
Confidence continues to be low in Wellington. In contrast, households in areas with a strong rural base or tourism connections, particularly in the lower South Island, are feeling more optimistic.
In terms of demographics, Imogen Rendall, market research director at McDermott Miller, said men’s confidence has stayed relatively stable this June quarter, with the index at 96.5, reflecting a slight decrease of 0.9 points, whereas women’s confidence has increased to 86.4, rising by 5 points.
Younger people’s confidence has declined and is now roughly equal to that of older New Zealanders, Rendall added.