Source: Radio New Zealand
Spending remained strongest in the South Island, but was picking up in other regions. 123rf.com
The holiday season appears to have boosted the spirits of consumers with household confidence on the rise.
The Westpac-McDermott Miller Consumer Confidence Index rose 5.6 points in December to 96.5.
While the reading was a little below long-run averages, it was the highest level of confidence seen this year.
Men were more optimistic at a positive 102.6 points, while women remained pessimistic at 90.6 points.
An index number over 100 indicates that optimists outnumber pessimists.
“Since our last survey, confidence has taken a step higher in most parts of the country, and spending appetites have also firmed,” Westpac senior economist Satish Ranchhod said.
Spending remained strongest in the lower South Island, but was picking up in other regions.
“That includes Auckland, which is now the most upbeat part of the country.”
Ranchhod said a drop in mortgage interest rates was playing a big part in the improved confidence.
“Increasing numbers of borrowers have been rolling on to lower interest rates. That process will continue into the new year and will help to boost households’ disposable incomes right across the country.
“Importantly, while we have seen some upwards pressure on borrowing rates recently, most borrowers who are refixing now will still be rolling onto much lower rates.”
Still, the cost of living remained a major concern, as well as the soft labour market.
“Those challenges will be with us for a while yet. However, we’re starting to see some more encouraging signs in the economy, and hopefully 2026 will be a more positive year for most New Zealand households,” he said.
McDermott Miller market research director Imogen Rendall said nearly half of women surveyed believed they were worse off financially than a year ago, compared with a third of men.
“Looking ahead to next year, both men and women have broadly similar expectations for their personal finances,” Rendall said.
Men, however, are more optimistic than women about New Zealand’s short-term economic future, as well as the country’s longer-term prospects.
“Confidence amongst younger age groups is relatively buoyant, particularly in contrast to older New Zealanders.”
She said people with a job were optimistic, with confidence up 6.4 points this quarter up to 104.7.
“Those not in paid work experienced the same lift in confidence this quarter, but they are still firmly pessimistic at 86.7,” Rendall said.
“Just under a quarter of those in paid work feel they are better off financially now than a year ago, compared to fewer than one in 10 of those who are not in paid work.”
The survey was conducted over 1-11 December 2025, with a sample size of 1550 and a 2.5 percent margin of error.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
