Eight in 10 Kiwis cutting back as global conflict hits household budgets

Wednesday, 6 May 2026

Eight in 10 New Zealanders have already cut back or changed their spending as the Middle East conflict pushes up costs, new data shows.

A survey commissioned by Westpac found 84% of people have adjusted their behaviour — up from 74% when the same poll was run on March 19.

More than three-quarters of respondents said they were worried about the hit to their finances. That includes 44% who were somewhat concerned and 32% who were very concerned, although the share who were very concerned has dropped from 42% in March.

The survey of 530 people, carried out by Ideally on April 30, shows households are actively changing how they spend to cope with rising costs.

“Rising prices are clearly weighing on New Zealanders’ minds, but what’s encouraging is they’re so far adapting well and making a plan to get through it,” Westpac NZ chief executive Catherine McGrath said.

“Every household will be adjusting and making their own choices about which types of spending to prioritise, but our research shows some broad patterns.”

Cutting back on non-essential spending is one of the biggest shifts, jumping to 43% of respondents from 28% in March. More people are also driving less (51%, up from 41%) and changing how they shop for groceries (35%, up from 26%).

“We can see these actions showing up in our own data. For example, Westpac customers have reduced their card spend on the likes of clothing and restaurant meals to offset their higher fuel costs since the conflict began,” McGrath said.

At the same time, many households are building a buffer. Nearly two-thirds of Westpac home loan customers were more than three months ahead on their repayments at the end of March, slightly up on six months earlier. The median customer was 10.6 months ahead.

During falling interest rates in 2024 and 2025, the bank encouraged customers to keep repayments at the same level even as minimum payments dropped.

“As a result, nearly half our fixed home loan customers are paying above their minimum, compared to a third when interest rates peaked in 2024. These customers can choose to temporarily reduce their payment levels to help manage their costs if they need to,” McGrath said.

The survey also found 41% of people who have made — or are planning — changes feel confident those steps will help them manage financially, while 24% are not confident. The rest are unsure or neutral.

Looking ahead, 82% of respondents said they are considering making changes over the next six months, similar to March (81%).

But McGrath warned pressure could build if the situation drags on.

“However, we know that the strain on many households will increase the longer the disruptions caused by the conflict drag on, and we’re monitoring this closely.

“If you’re at the point where you’re worried about how you’ll make ends meet, the best thing you can do is call your bank. The sooner we’re aware of potential issues, the sooner we can help you make a plan to get back on track.”

Are you cutting back? What are you cutting back on? Tell us in the comments below (app users, log in on mobile web to join the conversation).