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      New Zealand Consumer Confidence Declines Amid Rising Oil Prices

      Consumer confidence in New Zealand decreased in September, with the ANZ-Roy Morgan survey reporting a drop to 97.6 from 98.0 in August. This figure remains below the neutral mark of 100, indicating a prevailing sense of pessimism among consumers, although it is approximately 17 points higher than the low recorded in April. The decline in sentiment is attributed to a significant spike in oil prices during the month, which has raised concerns about inflation and household expenses.

      The survey revealed mixed results, with the current conditions index improving to 87.3 from 83.4, while future conditions fell to 104.5 from 107.7. A net 19% of respondents reported feeling worse off compared to a year ago, although this is an improvement from 21%. Expectations for the economy over the next year worsened, with the net balance dropping to minus 16 from minus 12. Inflation expectations for the next two years eased slightly to 4.5%, the lowest since March 2025, but concerns about rising oil prices have complicated the outlook.

      ANZ noted that the rise in oil prices, which peaked mid-month, has contributed to a shift in consumer sentiment, with inflation fears resurfacing. Despite the challenges, the bank highlighted that a weaker New Zealand dollar could benefit exporters and tourism, potentially mitigating concerns about further depreciation. Overall, ANZ anticipates a gradual and fragile economic recovery, with the Reserve Bank of New Zealand likely to remain cautious regarding rapid growth that could exacerbate inflationary pressures.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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