ANZ chief economist Sharon Zollner said the survey was a reality check. Photo: 123rf
- Consumers turn pessimistic in New Year
- More worried about their current financial position
- Less confidence in longer-term economic and personal outlooks
- More think it is a bad time to buy big-ticket item
Consumers have joined businesses with a downbeat start to the year, feeling less secure financially and more negative about spending on big-ticket items.
The ANZ-Roy Morgan consumer confidence survey for January fell four points to 96, after edging through the 100-point optimism level for the first time in three years in December.
ANZ chief economist Sharon Zollner said the survey was a reality check after the solid improvement through last year on the back of falling interest rates.
"The economy is typically a slow ship to turn. It has turned in a more positive cyclical direction, but continues to navigate choppy seas."
Most of the questions asked about household financial and national economy outlooks were more negative than the previous survey.
A companion survey of businesses showed a similar fall in confidence as firms looked more soberly at their prospects for the coming year.
Zollner said there was also a reality check for retailers, with a significant 15 percent increase in the number thinking it was a bad time to buy a big ticket item.
"This month's fall is a reminder that the environment for retailers is likely to remain patchy and challenging for some time yet."
Recent reports from large retailers including Briscoes, Michael Hill International, and KMD Brands have pointed to falls in sales and sluggish business.
She said sentiment might also be soured and inflation expectations stoked if households get more concerned about rising petrol prices.
However, Zollner expected sentiment and activity to improve on the back of further Reserve Bank rate cuts, with another 50 basis point cut to 3.75 percent likely next month.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
