Consumer confidence fell 3.2 per cent last week, driven by weakness in ‘economic conditions’. The index is now at a five-and-a-half year low.
‘Current economic conditions’ saw a significant decline of 16.6 per cent. In percentage terms, the downturn was the largest since January 2009. ‘Future economic conditions’ declined by 2.9 per cent. Both the subcomponents are well below long-term averages.
In contrast to the weakness in economic conditions, confidence in financial conditions rose. ‘Current financial conditions’ gained 3.8 per cent, while ‘future finances’ gained 0.9 per cent.
‘Time to buy a major household item’ fell by 3.8 per cent. The four-week moving average for ‘inflation expectations’ was stable at 4 per cent.