Consumer Confidence: confidence consolidates

The headline ANZ-Roy Morgan Australian Consumer Confidence fell a touch (-0.6%) from the previous week to 121.4. The four week moving average ticked up to 120.8, the highest in four months. Two out of the five sub-indices showed declines this week, while one was steady.

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ANZ’S HEAD OF AUSTRALIAN ECONOMICS, DAVID PLANK, COMMENTED

“Consumer confidence has consolidated over the past two weeks, after jumping sharply in early June, leaving the four week moving average at four month highs.

It’s a little disappointing that the passage of the income tax cuts through Parliament last week failed to boost expectations about future finances, although this likely reflects the softer housing market and ongoing global tensions.

Stepping back from weekly volatility, consumer confidence has been on an upward trajectory for some months. This is encouraging in the face of falling house prices and provides some comfort given that we see household spending as the key domestic risk to the economic outlook.”

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