Consumer confidence in New Zealand has fallen sharply in the June quarter as household budgets get increasingly squeezed from financial pressure, according to Westpac bank.
The Westpac McDermott Miller consumer confidence index plunged to the lowest level since the survey began in 1988, down 13 points to 78.7. Readings above 100 indicate optimism (pdf).
“The combination of rising mortgage rates and increases in living costs has already taken a large bite out of disposable incomes,” Westpac acting chief economist Michael Gordon said. “And with interest rates set to rise even further, many households will find the pressure on their finances becoming more intense over the coming months.”…