The proportion of households that thought it was a good time to buy a major household item fell back into the negative category, down five points to -4.
Last month was the first positive read for the measure in four years, but it remains well up on year-ago levels.
From a regional perspective, Zollner said confidence fell sharply in Wellington and Auckland, with the rest of the North Island the only region posting a monthly gain.
“We’d note that monthly moves in regional confidence are volatile, but the impact of the fiscal cycle on Wellington is clear to see in the chart.”
The future conditions index made up of forward-looking questions fell from 113.5 to 106.9, close to its November 2025 level.
The current conditions index similarly fell, down from 97.7 to 90.0, just below where it sat at the end of last year.
Perceptions regarding the economic outlook over the next year also dropped, down seven points to -8%, with the five-year-ahead measure falling four points to +8%.
In terms of personal financial situations, current perceptions fell 10 points from -6% to -16%, slightly above its December 2025 level of -18%.
Looking forward, a net 20% of respondents expected to be better off this time next year, down nine points.
As for house price inflation expectations, the measure eased from 3.7% to 3.6%. However, expectations from Wellington respondents bucked the trend, rising from 2.5% to 3.6%.
Two-year-ahead inflation expectations were little changed month-to-month, lifting 0.1 points to 4.7%, almost in line with current annual food price inflation.
Zollner said there is still pressure on Kiwi consumers.
“While there is still residual support coming through from past monetary easing, stagnant house price momentum, a loose labour market, and lingering cost-of-living pressures mean it’s still tough going out there for many households.
“In a long-term historical comparison consumer confidence remains subdued, but one month of retracing a particularly sharp gain doesn’t mean the trend has changed.”
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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