Consumer confidence: another modest decline
ANZ-Roy Morgan Australian Consumer Confidence slipped 0.6% last week, following a 0.8% decline in the previous week. A sharp improvement in households’ optimism regarding ‘future financial conditions’ was outweighed by deterioration in sentiment across the remaining subindices.
ANZ’S HEAD OF AUSTRALIAN ECONOMICS, DAVID PLANK, COMMENTED
“Confidence fell modestly for the second straight week, though it remains elevated. The fall occurred despite an upbeat statement and forecasts from the RBA released during the week. Geopolitical issues may be weighing on sentiment. US-China trade tension was in the news again, supporting the view that they are unlikely to be resolved quickly. A sharp fall in the Turkish lira, and its associated impact on financial markets more generally, may also have impacted.
Looking past external risks, overall domestic conditions are solid, though the consumer remains in the focus. On this front, the WPI print out on 15 August should provide further insight into the evolution of wage growth and consumption.”
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