Consumer confidence slumps

Consumer confidence has slumped as the slowing housing market and rising fuel prices start to bite.

The Westpac McDermott Miller Consumer Confidence Index fell 5.1 points in September, taking it to a level of 103.5 — the lowest level for the Index since September 2012.

“New Zealand households are particularly concerned about the outlook for their own finances and the general economy over the next year,” said Westpac chief economist Dominick Stephens. “Expectations for their own circumstances in the year ahead are at their lowest, outside of an actual recession, in the history of the survey.”

It wasn’t clear whether consumers were feeling the real impact of the slowdown or whether they were worried by what they were hearing about business confidence, he said.

A fall in the confidence of Aucklanders pointed to two likely causes for the dip, he said. “The slowdown in the housing market and rising fuel prices are potential factors behind the drop in confidence.”

Spending data for August remained strong. Seasonally adjusted total retail spending on credit and debit cards rose 1 per cent after lifting 0.2 per cent in July, according to Stats NZ. Core retail spending, which excludes vehicle-related industries, rose 0.7 per cent, after increasing 0.3 per cent in July.