NZ Westpac Consumer confidence dented by Q2 economic outlook

FXStreet (Mumbai) - The continued decline in dairy prices and the expected impact on the economy softened consumer moods this quarter, increasing expectations for interest rate cut in July more likely.

The Westpac-McDermott Miller Consumer confidence gauge fell from 117.4 last quarter to 113.0 in the June quarter, where a figure above 100 signals optimism, while a reading below 100 indicates pessimism.

The driver behind the dip in the confidence index was perceptions of economic conditions. The net percentage of consumers expecting good, rather than bad, economic times over the next year plunged from 23.8% to just 4.8% in the June quarter.