![\"credit](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/06\/4NQJ3XB_112696594_l_normal_none_jpg.jpeg\")
<\/p>\n<\/p>\n
\nConfidence fell across the board among both men and women.
\nPhoto: GOLUBOVY\n<\/p>\n
Consumer confidence has fallen sharply in the past quarter, as higher fuel and energy costs squeeze household budgets.<\/p>\n
The Westpac-McDermott Miller Consumer Confidence Index dropped by 14.3 points to 80.4 – its lowest level in three years<\/a>.<\/p>\n A reading below 100 indicates more households are pessimistic about economic conditions than optimistic.<\/p>\n Westpac senior economist Satish Ranchod said the pressure on household finances had spiked in recent months.<\/p>\n “The cost of essentials like petrol and electricity has skyrocketed,” he said, “along with mortgage costs pushing higher.<\/p>\n “The resulting squeeze on households’ finances has been a drag on spending.”<\/p>\n Confidence fell across the board among both men and women, with half of women seeing themselves as worse off financially than a year ago, compared with two in five men.<\/p>\n Looking ahead, McDermott Miller market research director Imogen Rendall said one third of households expected to be worse off next year – the most pessimistic result in three years.<\/p>\n “Just over a quarter of those in paid work expect to be better off financially in a year’s time, compared with just one in seven of those who are not in paid work,” Rendall said.<\/p>\n The report showed a net 38 percent of households have cut back spending on dining out and other entertainment, the weakest result since 1991 – echoing reports of tough trading conditions from hospitality operators in recent months.<\/p>\n Confidence fell in every region across the country, with Canterbury showing the smallest drop, as continued strength in the dairying sector helped insulate the region.<\/p>\n Wellington remained the most pessimistic part of the country, due to rising living costs, a softer jobs market and announced public sector job losses.<\/p>\n Relief on the horizon<\/p>\n Ranchhod said some relief may be on the horizon, following an agreement to extend the ceasefire in the Middle East this week<\/a>, which has already pushed global oil prices and local petrol prices lower.<\/p>\n “While domestic cost pressures remain elevated for now, the recent easing in global tensions could pave the way for a recovery in confidence and firming in economic activity through the back part of the year.”<\/p>\n