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.”