The Westpac McDermott Miller Consumer Confidence Index in New Zealand declined to 94.7 in Q1 2026 from 96.5 in Q4 2025, indicating that households have become more pessimistic about economic conditions. The survey was conducted in the first two weeks of March, coinciding with the outbreak of war in the Middle East, which triggered sharp increases in fuel costs. In this context, households have become somewhat more anxious about the economic outlook.
Until recently, a growing number of households reported that their financial position had improved over the past year, supported by sustained strength in export commodity prices—particularly for New Zealand’s key dairy exports—and a substantial fall in borrowing costs. However, these favourable domestic developments have now been overshadowed by increasingly concerning global events. The longer the conflict persists, the greater the likely disruption to economic activity and the more intense the financial pressure on households will become.