Investor confidence in NZ dips to lowest level in five years

Investor sentiment in New Zealand has fallen sharply, reaching its lowest point since the third quarter of 2020, according to ASB Bank’s quarterly survey. Global trade uncertainty, US tariffs, and domestic pressures such as a sluggish housing market have combined to undermine optimism.

Only one percent of respondents now expect investment returns to improve over the next year, down from nine percent in the previous survey. Around half of investors are “very concerned” about the impact of global instability, while almost 40 percent are slightly concerned. Regional and international issues, including conflicts such as in Ukraine, also contributed to heightened caution.

Confidence varied across age and location. Younger investors under 39 showed higher optimism, while those over 60 were the most pessimistic. Geographically, Auckland-based investors held relatively steadier expectations, while confidence in the lower North Island plunged to a six percent expectation of improved returns.

Despite market turbulence, few investors have adjusted their strategies—only 13 percent reported making changes, mainly to improve financial literacy and monitor holdings more closely. ASB senior economist Chris Tennent-Brown emphasised the value of maintaining long-term investment strategies over reactive short-term adjustments.

The survey underscores that, while confidence is fragile, disciplined investors continue to prioritise sustainable growth over tactical market moves, highlighting the importance of strategic planning in volatile environments.

Discover the full survey insights and what they mean for future market stability.