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Satish Ranchhod: Westpac senior economist on consumer confidence declining · Best of Business

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  Speaker 2: Westpac, in its latest consumer confidence survey, has found that
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  Speaker 2: we're down eight points this month to eighty nine point two.
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  Speaker 2: A number over one hundred is positive, So we're a
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  Speaker 2: bit off that Wellington in the Doldrums South Island is
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  Speaker 2: particularly south of the South looking quite good. A lot
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  Speaker 2: rosier there. Westpac Senior economist Statis Ranchot is with me tonight,
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  Speaker 2: good evening, Hey Ryan, Howia, Yeah, good, thank you. So
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  Speaker 2: this is what do you put it down to global
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  Speaker 2: factors the ongoing cost of living feeling.
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  Speaker 3: I think both of those factors are raising a lot
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  Speaker 3: of concerns for household right now. The global outlook has
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  Speaker 3: become just so much more in certain just over the
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  Speaker 3: past couple of weeks, and many households are still dealing
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  Speaker 3: with the impact of big consumer price rises over the
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  Speaker 3: last couple of years.
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  Speaker 2: We were coming out of it though, when we were
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  Speaker 2: on the up, and this is a setback in our confidence,
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  Speaker 2: isn't it.
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  Speaker 3: Confidence has taken a little bit of a step down
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  Speaker 3: after it's been trending high for the past year. I
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  Speaker 3: think If we look to the rest of this year,
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  Speaker 3: we are going to see confidence and economic activity continuing
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  Speaker 3: to climb. We've had some big interest rate reductions and
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  Speaker 3: we haven't felt the full impact of that yet. But
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  Speaker 3: as people roll into law of fixed mortgage rates, I
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  Speaker 3: think we'll see a gradual recovery. But the key thing
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  Speaker 3: here is it will be a gradual recovery in the economy.
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  Speaker 2: Do you think does this survey indicate that it might
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  Speaker 2: take longer than we are otherwise thought it would have.
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  Speaker 3: I think we weren't expecting to see things turning around
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  Speaker 3: too quickly. It takes a while for those interest rate
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  Speaker 3: cuts to flow through. Since most of us fix our
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  Speaker 3: mortgages for one to two years, we're really going to
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  Speaker 3: see a lot of households rolling onto laura rates in
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  Speaker 3: the second part of the year, and that's when we'd
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  Speaker 3: expect to see things really turning around.
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  Speaker 2: All right, doesn't sound like you're panicking. That's good to hear,
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  Speaker 2: Statista and Jod with us Westpac senior economists.
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