Households’ perception of current financial conditions fell 2% last week, thus taking a respite after three consecutive weekly gains. Sentiment regarding the future financial situation fell by 0.6%, adding to the fall of 1.2% in the previous week.
Sentiment towards current and future economic conditions fell by 0.2% and 2.0% respectively. Both these indices rose last week, by 2.1% and 1.3% respectively.
The ‘time to buy a household item’ sub-index increased by 1.2%, its second consecutive weekly gain. Four-week moving average inflation expectations were stable at 4.3%.
ANZ's Head of Australian Economics, David Plank commented:
“Confidence fell slightly last week, retracing the gain of the previous week and extending the sawtooth pattern of the past month or so. News of weaker house prices and the sharp fall in building approvals last week likely added to the negative impact of rising petrol prices and offset more encouraging retail and trade data. Overall, we are encouraged by the resilience of consumer sentiment in the face of the negative impact of higher petrol prices in particular – especially when we take into account the extensive media coverage the rise in petrol is attracting."