"Less exuberant economic news, rising interest rates and, possibly, uncertainty ahead of the election may all be factors weighing on the minds of consumers."
- Westpac
On Saturday, the general election took place in New Zealand. The victory was secured by the National Party of the country, which was two seats short of the overall majority in the previous parliament. During the election campaign, the support of this party stood well above the 45% mark, while the main opposition Labour party's support went down in recent months. As a result, it managed to gain 48% of votes and receive 61 out of 120 seats in the new Parliament, guaranteeing the overall majority. Support of the Labour party decreased to 25%, while Greens got 10%. Therefore, the country's Prime Minister John Key won his third term in the office.
Meanwhile, consumer sentiment in New Zealand recorded a decline in September of this year, falling from June's 121.2 points to 116.7 points this month. However, reading above 100 points still indicates optimism among country's consumers. Analysts explain the change by uncertainty before election, rising interest rates and, as a consequence, falling expectations about economy. The near-term optimism posted the sharpest drop from 31% to 18%. The index is calculated by asking around 1,500 consumers about their past and future economic conditions, personal financial situation and climate for major purchases.
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