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Consumer confidence mixed

Consumer confidence softened 0.7 per cent last week after a 6.6 per cent jump over the previous two weeks. Across the major states, confidence increased in Queensland and SA, while it fell in NSW, Victoria, and WA.


• ‘Weekly inflation expectations’ dropped 0.2ppt to 5.3 per cent, while its four-week moving average remained steady at 5.6 per cent.


• The confidence subindices results were mixed. ‘Current financial conditions’ rose 1.1 per cent. ‘Future financial conditions’ fell 1.9 per cent after an 8.8 per cent increase in the previous two weeks.


• Both ‘current’ and ‘future economic conditions’ gained for a third week in a row by 0.9 per cent and 1.6 per cent respectively. ‘Current economic conditions’ have risen by 24.5 per cent in the past three weeks.


• ‘Time to buy a major household item’ plunged 5.5 per cent, dropping to its lowest since the early stages of the pandemic in April 2020.

"Consumer confidence was almost unchanged with a slight drop of 0.7 per cent last week. But there was quite a mix in the detail. There was a sharp fall in the sub-index that captures whether it is a ‘good time to buy a major household item’, and a moderate drop in the ‘future financial conditions’ sub-index." ANZ Head of Australian Economics, David Plank said.


"In contrast, ‘current financial conditions’ and sentiment about current and future economic conditions all rose. Lower inflation expectations may have helped sentiment toward ‘current financial conditions’. All sentiment sub-indices remain weak, however, with only ‘future financial conditions’ in positive territory. Consumers are likely to stay cautious in outlook until there is better news about real wages. Though it is important to remember that this caution hasn’t actually been reflected in a pullback in spending – at least not yet."


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