ANZ-Roy Morgan Australian Consumer Confidence slipped 0.7% last week to 112.6, a touch under its long term average of 112.9. The details were broadly negative, with four out of five sub-indices showing falls.
The one sub-index improving was the outlook on economic conditions next year, which rose 2.1%, partially offsetting the previous week’s 4.5% fall. Meanwhile, consumers were more pessimistic about longer-term future economic conditions; this sub-index slipped 2.8% last week to its lowest value in eight weeks.
Views about current financial conditions eased slightly (0.5%) last week, after a solid 5.3% jump the previous week. The outlook for future financial conditions fell for the third straight week, bringing the index down to its lowest point in 11 weeks.
The ‘time to buy a major household item’ index slipped 0.5% to 132.1 and remains below its long term average of 133.8.
The weekly value for inflation expectations fell to 4.3% last week after remaining stable at 4.5% for the previous four weeks.
ANZ’S HEAD OF AUSTRALIAN ECONOMICS, DAVID PLANK, COMMENTED
“It is encouraging to see that households’ views towards their current finances remain above the long term average, suggesting that broadly they have been able to weather the pressure on their wallets caused by the jump in energy prices – though not without some hit to retail sales. But, given limited wage gains, slowing house-price growth and an already low savings rate, consumers are increasingly less certain about the future, as reflected in the recent downtrend in future conditions. A similar story holds true for the economic conditions sub-indices.
Broadly, consumer confidence continues to track around its long term average supported by still accommodative monetary conditions and a strong labour market. Next week’s employment and wage price index release are likely to influence confidence in the coming weeks.”