New Zealand's consumer confidence edged down to 97.6 in September from 98 in August, remaining below par but 17 points above its April low, according to a survey by ANZ Research and Roy Morgan Research released Friday.

Meanwhile, consumers' assessment of their financial situation improved to negative 19% from negative 21% in the previous month, while the proportion of households considering purchasing a major household item rose to negative 7% from negative 12% in August.

Two-year-ahead consumer price index inflation expectations eased to 4.5% from 4.7%, their lowest level since March 2025, although weekly data showed an uptick toward the end of the month.

Consumers' year-ahead economic outlook fell to negative 16% from negative 12%, while the five-year expectations dropped 3 points to 10%.

Oil prices rose sharply in September before easing later in the month. Consumer confidence weakened, while inflation expectations increased toward month-end, broadly aligning with softer business activity indicators, although some inflation measures edged slightly lower, per the report.

New Zealand's economy is showing mixed signals, with strong export prices and a weaker New Zealand dollar supporting key sectors, while a cooling housing market, elevated unemployment, and persistent cost-of-living pressures continue to weigh on households.

The economic recovery is expected to continue but remain gradual and fragile, with high interest-rate sensitivity and global uncertainty limiting its reach to households, the report added.