Consumer Confidence Drop Reflects Pressure On Households

The drop of consumer confidence into pessimism reflects the pressure New Zealand households are now under, National's Finance spokesperson Bill English said today.

"There has been a feeling that things are getting more difficult, and it's harder to make ends meet now than a year ago.

"The new WestpacTrust McDermott Miller Consumer Confidence survey confirms those sentiments.

"The highest percentage of people since June 1993 feel worse off financially than a year ago.

"Since the election household budgets have been hit by rising interest rates and the lower New Zealand dollar. Every time the dollar drops it increases the pressure on a whole range of price

"The petrol prices are only the start.

"There are signs that this drop in confidence will be reflected in declining house prices and that will really hit the New Zealand family.

"There's also concern about where the economy is heading given that business confidence remains pessimistic, and the fact that 10,000 jobs have been lost in the last 6 months.

"This concern must be sheeted home to the Government and its policy changes which has seen confidence in New Zealand's future evaporate on all fronts - local business, international investors, and now Mum, Dad and the kids," Mr English said.

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