RPT-NZ consumer confidence hits 10-year low in Q1

WELLINGTON, March 26 (Reuters) - New Zealand consumer confidence tumbled to 10-year lows in the March quarter, hit by high interest rates, global market turbulence, and rises in food and petrol prices, a private survey showed on Wednesday.

The Westpac-McDermott Miller consumer confidence index fell to 96.5 in the three months to March, from 110 in the December quarter.

It was the first time in eight years that the reading was below 100, which indicates there are more pessimists than optimists.

"Consumers have reached their tipping point. The realisation that they are not immune to broader economic developments has hit home hard this quarter," Westpac Bank economist Donna Purdue said in a statement.

The deterioration in confidence was driven by a sharp decline in the short-term economic outlook, with a net 37.2 percent expecting the economy to worsen over the next year, compared with 4.4 percent in the previous quarter.

The survey showed respondents were now pessimistic about current conditions, with a net 18.9 percent saying they were worse off financially than a year ago, compared with previous quarter's 2.5 percent who said they were better off.

"Rising food and petrol prices, high mortgage interest rates, drought, falling house price inflation, and turmoil in global financial markets are all painting a grim picture." Purdue said.

"Even so the extent of the fall in confidence this quarter has left us stunned."

The Reserve Bank of New Zealand raised its official cash rate (OCR) by a total of 100 basis points last year year to 8.25 percent to cool inflation pressures stemming from strong consumer spending and a rampant housing market.