Concern easing but three in five still worried about their finances, Westpac finds
New Westpac NZ research shows 60% of New Zealanders remain concerned about the Middle East conflict's impact on their household finances, though this is down sharply from 80% in March and 76% in April.
The nationally representative survey of 535 people, conducted on research platform Ideally, found only 19% now describe themselves as "very concerned," compared with 42% shortly after the conflict began, while a further 41% report some level of ongoing concern.
Reuben Tucker, Westpac NZ managing director of institutional and business banking, said the timing of the survey, taken just before hostilities between the US and Iran escalated again, underscores how quickly sentiment can shift.
"The flare up in geopolitical tensions over the past few days – and the subsequent rise in oil prices – reinforces that we're still in an uncertain and volatile environment," Tucker said in a media release.
An interim US-Iran truce has since collapsed amid tit-for-tat strikes, with Brent crude climbing as high as US$87–88 a barrel this week before easing to the mid-US$80s. RBNZ chief economist Paul Conway has separately flagged upside risk to the bank's near-term inflation forecasts amid the renewed volatility.
Households adjusting spending, businesses still under pressure
Despite that volatility, Tucker said New Zealanders have already made practical changes to manage costs, including driving less (44% of respondents), altering grocery shopping habits (31%), and delaying large purchases (25%).
"The good news is that as a country we've shown ourselves to be adaptable and resilient through external shocks in recent years, and this episode is no exception," he said.
Businesses in transport, manufacturing and agriculture continue to report difficult trading conditions.
"We're talking to farmers whose fertiliser costs are way over budget, retailers who are still facing subdued consumer demand for their goods, and manufacturers grappling with supply chain issues," Tucker said, adding that some sectors, including tourism and fast-moving consumer goods, are seeing early signs of a lift in discretionary spending as household confidence slowly recovers.
He encouraged customers experiencing financial strain to reach out early.
"Anyone who's worried about making ends meet should talk to us. The sooner we're aware of potential issues, the sooner we can help you get back on track," Tucker said.
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