The Westpac McDermott Miller Consumer Confidence has fallen to 114.8 in the December quarter, down from 116.7 in September, indicating a drop in New Zealand shopper confidence.

The Index is the lowest since March 2013, when it was 110.8.

“Consumer confidence has continued to slide, particularly in rural and provincial New Zealand,” Westpac chief economist, Dominick Stephens.

“Clearly, prospects for a low dairy payout this season have taken their toll. For the time being, falling petrol prices and lower mortgage rates appear not to have registered as a positive in consumers’ minds,” said Stephens.

“Even in the main cities consumer confidence remained steady, rather than rising.

“Retailers will find some solace in the fact that consumers’ spending intentions have held steady – they may be feeling less optimistic, but they aren’t tightening their belts just yet.”

The survey was conducted between December 1 and 11, with a sample size of 1557. An index number over 100 indicates that optimists outnumber pessimists. The margin of error of the survey is 2.5 per cent.

All the component questions of the Index declined. The percentage of respondents saying now is a good time to buy a major household item fell the least, from a net 26.1 per cent to 25.8 per cent, a little below the historical average.

Consumer expectations for the wider economy declined further, with the percentage feeling optimistic for the year ahead falling to a net 16.5%, the lowest since September 2013, and optimists for the next five years declining to a net 27.2 per cent, the lowest since December 2012.

Respondents also felt less positive about their own financial situation, with a net 3.1 per cent saying their financial situation has deteriorated over the past year (down from -0.1 per cent), and a net 7.9 per cent expecting

it to improve over the year ahead (down from 10.2 per cent).