Consumer confidence: ends it streak
- ANZ-Roy Morgan Australian Consumer Confidence dropped 3.2% last week to 117.7, after six straight weekly gains. The details were also negative with confidence falling across all subindices, led by a sharp fall in views towards future financial conditions.
- Households’ views towards current financial conditions fell 2.7% last week entirely reversing gains over the previous two weeks. Views towards future financial conditions fell 4.1% to 122.5, the lowest since November last year.
- Sentiment around current economic conditions eased 2.4% last week following no change previously. Views towards future economic conditions fell 2.5% last week, adding to the 1.9% loss in the previous week.
- The ‘time to buy a household item’ subindex dropped 3.9% last week, more than reversing the previous week’s rise (2.6%). The weekly inflation expectations climbed sharply to 4.7%.
ANZ's Head of Australian Economics, David Plank, commented:
“Confidence fell substantially last week – down 3.2% and unwinding over half of the cumulative gains (5.6%) over the past six weeks. Some payback, particularly in views towards economic conditions, is unsurprising given their sharp improvement since early April. Importantly, confidence is still well above its long-run average.
The fall in views towards financial conditions is a little worrying, however. This could reflect homeowners’ concerns about falling house prices, particularly in Sydney and Melbourne. Moreover, these concerns are likely exacerbated by the high existing household debt level and expectations of lacklustre wage growth in the near future. That said, despite the recent decline, views towards both current and future financial conditions remain above their long term averages.”