16 Jul 2015

Consumer confidence at three-year low

2:59 pm on 16 July 2015

Consumer confidence has fallen to its lowest level in nearly three years, as the regions start to feel the effect of weaker dairy prices.

The ANZ Roy Morgan Consumer Confidence Index has fallen another six points to 113.9 in July, a total of 15 points so far this year. It is now below the historical average.

The survey results show consumers are pessimistic about the economy in the next year, and also less optimistic about economic performance five years ahead.

However, the survey commentary said falling mortgage rates and rising house prices meant consumers were more optimistic about their own households' prospects.

It said the sharpest fall in confidence was in the regional North Island, partly because of stress in the dairy sector.