Consumer confidence falters amidst market fears
ANZ-Roy Morgan Australian Consumer Confidence eased 1.6% last week on the back of a 0.9% decline the prior week. The details were largely negative, with sentiment around future financial conditions and the ‘time to buy a household item’ subindex posting the sharpest declines.
- After falling a sharp 6.8% in the previous week, views towards current economic conditions edged up 0.7% to 102.5 last week. Sentiment around future economic conditions fell for the second straight week, however, down another 1.1% after last week’s 3.6% fall.
- Households’ views towards current financial conditions slipped 0.8% last week following a 3.1% decline previously. Consumers were also pessimistic about future financial conditions, with a fall of 2.3% unwinding much of the 2.8% rise in the previous week.
- The ‘time to buy a household item’ fell 3.6% last week largely unwinding the previous week’s 4.2% jump. Inflation expectations edged back up to 4.5% on a four-week moving average basis.
ANZ’S HEAD OF AUSTRALIAN ECONOMICS, DAVID PLANK, COMMENTED:
“Confidence slipped further last week likely following the decline in global and domestic equities. Markets remain spooked about a possible escalation between US and China in the trade space.
Aggregate confidence in economic conditions has fallen to its long run average (Figure 3) for the first time this year. The fall in economic sentiment likely reflects the uncertainty generated by the dispute around global trade policy and the impact this is having on equity markets. Aggregate confidence in financial conditions remains more elevated and is still well above its long-run average, however. The ongoing strength of the labour market is likely a factor in this.”
