Consumer confidence dips

New Zealand consumer confidence declined for the first time in five months in the first half of November, hampering the economy's recovery from the recession.

Confidence fell 4.4 points to 121.5 after reaching a 22-month high last month, according to an index compiled by Roy Morgan Research and ANZ National Bank.

Consumers are confident about future conditions but are less optimistic about their present situation, ANZ said.

Slowing confidence may curb retail spending in the approach to the busy Christmas season, slowing New Zealand's recovery from the worst recession in three decades.

Retail sales gained 0.1 per cent in the third quarter and the central bank has pledged to keep interest rates at a record low until the second half of next year to stimulate demand.

"Consumers will remain cautious about their spending decisions heading into the holiday shopping season," ANZ said.

More consumers said they were worse off financially than they were a year ago and fewer said it was a good time to buy a major household item. More consumers said they expected to be better off in a year.

The survey of 1020 people was conducted between November 2 and November 15.

- BLOOMBERG