New Zealand braces for hung parliament as smaller parties advance

SYDNEY (Reuters) - New Zealand is heading towards a hung parliament after an October election, according to polling published on Wednesday that showed support for major parties slipping to the benefit of several smaller ones.

The latest Taxpayers’ Union – Curia poll forecast a centre-right bloc of the National Party and the ACT party winning 60 seats, down two from a month earlier. The rival centre-left bloc, combining the ruling Labour Party and Greens, edged up two to 60 as well.

Parties need 61 seats for a majority in New Zealand's 120-seat House of Representatives.

Three months out from the election, voters are shifting their support away from the two big parties towards a host of smaller contenders, the polling showed.

Support for the ruling Labour party dropped 1.8 points to 31.1%, while its main rival, the centre-right National party, dipped 2.4 points to 33.3%.

A host of smaller parties benefited, including the Maori Party, up 1.5 points to 5%, NZ First up 1.7 points to 3.3% and Democracy NZ up 1 point to 1.9%.

Roughly seven months since Prime Minister Chris Hipkins took office following the surprise resignation of Jacinda Ardern, a record number of New Zealanders believe the country is faring poorly.

Polling showed 64.5% of respondents said the country was heading in the wrong direction, compared with 22.1% who said the opposite.

The monthly Taxpayers’ Union – Curia poll sampled 1,000 voters between July 2 and July 10.

(Reporting by Lewis Jackson; editing by Robert Birsel)