Perceptions of current personal financial situations fell 3 points to 1%.
A net 12% expect to be better off this time next year, down another 3. While not negative, this is an unusually low reading outside a recession.
Households are evenly divided on whether it is a good or a bad time to buy a major household item, which is up 6 points. This is the best retail indicator in the survey.
Perceptions regarding the next year’s economic outlook bounced 8 points to -20%, still a very low level. The five-year outlook fell another point to -1%. It’s very unusual for this series to be negative.
House price inflation expectations fell 0.6%pts to 5.3%. They rose in Canterbury, but fell everywhere else.
CPI inflation expectations ticked down -0.1%pts from 5.7% to 5.6%, still super strong. Cost of living increases are likely contributing to wariness about splurging this Christmas.
Households’ response to whether it was a good time to buy a major household item skyrocketed in Wellington but remains subdued elsewhere. Those 50+ are the most comfortable spending, which isn’t unusual.
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