Wellington most pessimistic about economy, and Auckland most upbeat
Wednesday, 17 December 2025
Wellington has plunged to the bottom of the national optimism charts in the latest Westpac-McDermott Miller Consumer Confidence survey, while Auckland has become “the most upbeat part of the country”.
The capital has been hit by repeated blows to the job market from government job cuts, and the survey of just over 1500 people conducted between December 1 and December 11 showed it was one of only three regions to see consumer confidence drop since the survey was last done in September.
The others were Southland and Waikato.
Westpac senior economist Satish Ranchhod said Aucklanders had been buoyed by lower mortgage rates, leaving more money in many households’ pockets, as well as an increase in international tourists visiting the city.
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Consumer confidence was much lower in dairying regions like Canterbury and Waikato, the survey showed.
Ranchhod said some of the “froth” was coming out of dairy prices after a boom period for dairy farmers.
Over the past 10 years the national average Westpac-McDermott Miller Consumer Confidence Index score was 98.7.
The December score in Auckland was 106.9, compared with just 83.8 in Wellington, 93.1 in Canterbury, and 86.6 in Waikato.
Despite the mixed picture around the regions, the average of the scores in the 11 regions covered by the survey was 96.5, up from 90.9 in September.
That indicated a tangible turn in economic confidence in households, according to Ranchhod.
“While we often see a lift in households’ spirits at this time of year, there is reason to expect some of that Christmas cheer will continue into 2026,” he said.
“Increasing numbers of borrowers have been rolling on to lower interest rates. That process will continue into the new year and will help to boost households’ disposable incomes right across the country.”
He said even though some banks have lifted some borrowing rates recently, most borrowers who were refixing now would still be rolling onto much lower rates.
“For instance, one-year fixed mortgage rates are around 130 basis points lower than this time last year, while two-year fixed mortgage rates are 220 basis points lower than in December 2023,” he said.
The South Island has been the strongest economic performer in the past 12 months.
“Spending remains strongest in the lower South Island,” Ranchhod said. “But in contrast to the past year, we’re now seeing spending picking up right across the country. That includes Auckland, which is now the most upbeat part of the country.”
But while many households were feeling more cheerful, many others faced “tough” conditions, he said.
“The cost of living remains a major concern, as does softness in the jobs market. Those challenges will be with us for a while yet. However, we’re starting to see some more encouraging signs in the economy,” he said.
There was a distinct difference in the confidence levels of men and women. The average confidence score for men (102.6) was close to the score for the whole of Auckland, while the average score for women (90.6) was closer to that of Wellington.
“Close to half of women believe they are worse off financially than they were a year ago, compared with just over a third of men,” Ranchhod said.
“Looking ahead to next year, both men and women have broadly similar expectations for their personal finances. Men, however, are more optimistic than women about New Zealand’s short-term economic future, as well as the country’s longer-term prospects,” said Imogen Rendall, market research director of McDermott Miller.
Young people were much more optimistic than older people who have lived through repeated financial downturns.
Unemployed people were still firmly pessimistic, Rendall said.
However, the average confidence score for unemployed people (86.7) was still higher than the confidence score for Wellington.
And the majority of those in work felt they were worse off financially now than a year earlier, the survey showed.