An increasing number of New Zealanders are changing their spending habits and behaviours in response to the Middle East conflict, according to new Westpac NZ research.
A nationally-representative survey of 530 people, conducted on research platform Ideally late last week, found 84% of people have adjusted their behaviour in response to the conflict - up from 74% when the same survey was conducted on 19 March.
Of those who have changed or are considering changing their behaviour in the next six months, 41% say they're confident the changes will help them manage the impact of the conflict on their finances, compared to 24% who are unconfident. The remainder are either unsure or neither confident nor unconfident.
The survey also found more than three-quarters are worried about the impact of the conflict on their finances, with 44% somewhat concerned and 32% very concerned. That's down from 42% who were very concerned in March.
Nearly two-thirds of Westpac's home loan customers were more than three months ahead on their repayments at the end of March, up slightly on six months ago. The median customer was 10.6 months ahead.
"Rising prices are clearly weighing on New Zealanders' minds, but what's encouraging is they're so far adapting well and making a plan to get through it," says Westpac NZ CEO Catherine McGrath.
"Every household will be adjusting and making their own choices about which types of spending to prioritise, but our research shows some broad patterns.
"The most notable change between the two surveys is the increase in people cutting back on non-essential spending from 28% to 43%, while 51% are now driving less compared to 41% in March. More than a third (35%) now say they've changed how they shop for their groceries, up from 26% in March.
"We can see these actions showing up in our own data. For example, Westpac customers have reduced their card spend on the likes of clothing and restaurant meals to offset their higher fuel costs since the conflict began.
"We're also helping both households and businesses reduce their long term energy costs. We're seeing roughly double the volume of enquiries for EV lending through our interest-free Greater Choices[i] home loan top ups and our EV Personal Loan[ii] offering since the start of March.
During the falling interest rate environment of 2024 and 2025, Westpac actively encouraged fixed home loan customers to continue repaying the same regular amount on their loan even as their minimum required repayments fell.
"As a result, nearly half our fixed home loan customers are paying above their minimum, compared to a third when interest rates peaked in 2024. These customers can choose to temporarily reduce their payment levels to help manage their costs if they need to.
"However, we know that the strain on many households will increase the longer the disruptions caused by the conflict drag on, and we're monitoring this closely.
"If you're at the point where you're worried about how you'll make ends meet, the best thing you can do is call your bank. The sooner we're aware of potential issues, the sooner we can help you make a plan to get back on track."
