New Zealand consumer confidence fell 14.3 points in the June quarter to 80.4 from 94.7 in the previous quarter, marking its lowest level since 2023, according to the Westpac-McDermott Miller Consumer Confidence index released Wednesday.
There is increased concern about the outlook for the economy, with a level below 100 indicating that a greater number of households are pessimistic about economic conditions compared with those who are optimistic.
The present conditions index declined to 73.5 from 87.9, while the expected conditions index dropped to 85 from 99.2, the report said.
Consumer confidence has declined significantly in recent months as the effects of the Middle East conflict have spread through the global economy and into household finances in New Zealand.
Households are feeling the squeeze as rising fuel and living costs, higher borrowing expenses, and mounting economic uncertainty weigh on consumer spending.
Nationwide confidence has weakened, with Wellington remaining the most pessimistic region amid public sector job cuts and a soft labor market, while sharp declines in Otago and broader cost-of-living pressures weigh on sentiment across the country.
A fragile geopolitical de-escalation in the Middle East has started to ease pressure on global markets, with oil prices retreating and hopes rising that economic confidence and activity could recover later this year.