Kiwis report rising stress as optimism weakens nationwide
The October 2025 Perceptive Mind & Matters report shows New Zealanders entering summer on a softer emotional footing, with happiness and optimism sliding after months of improvement.
The decline comes as new inflation data shows consumer prices rose 1% in the September quarter, pushing annual inflation to 3% – the highest since mid-2024. Economists expect the spike to be short-lived, but food, housing and energy costs continue to put real pressure on household budgets.
While broader inflation should ease next year, the report shows many Kiwis are still navigating stress, uncertainty and affordability challenges that shape both mood and financial confidence.
Kiwis grow less upbeat as financial pressures linger
Emotional trends turned downward through spring. 'Happy/Joyful' dropped seven percentage points from August to October, and 'Optimistic' fell 10 points, reversing gains seen since winter.
Women drove most of the decline in happiness (-12pp), while men drove the sharp fall in optimism (-21pp).
Younger adults (18–34) were the happiest group (61%) but also the most stressed (49%) and anxious (43%). Older New Zealanders were the most relaxed (62%).
Key shifts:
- Happy/Joyful: down from 59% in August to 51%
- Relaxed: steady around 48%
- Optimistic: down to 39% in October
- Stressed: steady around 41%
- Frustrated: holding high at 42%
Men more volatile, women more stable
Men saw sharper emotional swings – frustration climbed while stress fell (37% → 29%). For women, emotions held steadier, though happiness still dropped significantly from 64% to 52%.
Future outlook improves slightly, led by younger Kiwis
Despite the softening mood, future expectations improved in October. 40% of New Zealanders now expect things to “get better”, with fewer anticipating decline.
Younger New Zealanders are the most hopeful: 57% of 18–34 year olds expect improvement, compared with 30% of those 65+.
What’s driving optimism:
- "I expect to earn more and be able to do things to help myself and family"
- "Working on health in all areas of my life"
- "Hope. I have hope"
Reasons for pessimism included inflation, political dissatisfaction and economic unease:
- "Things are getting more expensive and salaries aren't matching this"
- "I think the economy is now in an irreversible slide"
- "Unless we get a new government, things will get a lot worse
Most Kiwis believe the country is heading in the wrong direction
Negative sentiment reached 62%, the highest level since September 2023. Only 38% believe New Zealand is on the right track.
Ethnic differences were stark:
- 84% of Māori say the country is heading the wrong way
- 62% of NZ Europeans agree
Top concerns:
- Healthcare: 65%
- Leadership and politics: 58%
- Economy: 58%
- Crime: 52%
- Infrastructure concerns rising, overtaking environmental issues
Wellbeing efforts hold steady
Around half of women and 36% of men reported taking steps to improve wellbeing – a consistent trend in recent months. Historically, these efforts rise again in January.
Household finances show early stabilisation
Signs of recovery appeared in October. More Kiwis saved toward long-term goals (+6pp), while fewer said their income only covers essentials (-3pp). Emergency saving also eased slightly.
- Women: more likely to cover essentials (36%)
- Men: more likely to save for emergencies (39%)
- 18–34 year olds: highest emergency savers (47%)
- 65+: most likely to have little left to save (30%)
Inflation pressures still shaping spending
Despite easing inflation, daily costs continue to shape behaviour:
- 45% are monitoring spending closely
- Almost one-third are actively cutting back
- Cutting back is highest among 45–64s (40%)
Top categories trimmed first:
- Homeware and décor (60%)
- Entertainment/streaming (59%)
- Clothing/footwear (55%)
Access the full report here for more insights.
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