Consumer confidence at 34 year low

Radio NZ reports:

The Westpac McDermott Miller Consumer Confidence Index fell sharply in the three months ended June, falling 13 points from the previous quarter to 78.7.

It is the lowest level recorded since the survey began in 1988 and well below the average of 110.2. …

Household budgets were being squeezed in a way they had not been for decades, Westpac acting chief economist Michael Gordon said.

I remind people that the Government plans to soon pass law that will impose an extra tax on employees and employers up to $1,800 a year. Yes household budgets are the most stretched in decades, and Labour wants to whack an extra tax on to reduce your take home pay even further.

This graph is fascinating. It shows that in the past the 12 month outlook has sometimes been very negative, but that NZers have always been optimistic over the five year outlook. This is the very first time in 34 years that more NZers have been pessimistic over that medium term.