Apr 20, 2022
April 27, 2022
Consumer Confidence improvement stalls
Consumer confidence declined slightly by 0.3 per cent last week, after a 6.3 per cent increase over the past three weeks. Among the major states, confidence rose in NSW, Queensland and SA, while it dropped in Victoria and WA.
• ‘Weekly inflation expectations’ dropped 0.2ppt to 5.1 per cent, while its four-week moving average dropped 0.3ppt to 5.5 per cent.
• The confidence subindices registered mixed results. ‘Current financial conditions’ increased by 3.1 per cent, while ‘future financial conditions’ fell 2.2 per cent.
• ‘Current economic conditions’ rose 1.0 per cent, its fifth straight weekly gain. ‘Future economic conditions’ decreased by 3.9 per cent.
• ‘Time to buy a major household item’ gained 1.1 per cent, rising 8.7 per cent over the past four weeks.
"Consumer confidence was practically unchanged last week, despite the continued fall in inflation expectations." ANZ Head of Australian Economics, David Plank said.
"Confidence declined by a modest 0.3 per cent as petrol prices increased a touch after four straight weeks of decline. Even with higher petrol prices, households’ inflation expectations dropped 0.2ppt to 5.1 per cent, its lowest level since the week ended 20 February.
Today’s inflation data could have a near-term impact on sentiment, with it expected to confirm that inflation has surged. Among the major states, confidence increased 5.5 per cent in NSW, 2 per cent in Queensland and 3.5 per cent in SA, while it dropped 4.4 per cent in Victoria and 12.5 per cent in WA. NSW was the only state with confidence above the neutral level of 100."
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