October 25, 2022
Consumer confidence continues decline
• Consumer confidence decreased 1.3 per cent last week, its fourth consecutive weekly decline. Among the mainland states, confidence dropped in New South Wales, South Australia and Western Australia, while it increased in Victoria and Queensland.
• ‘Weekly inflation expectations’ rose 0.1 percentage points to 6.1 per cent, while its four-week moving average was up 0.3 per cent to 5.8 per cent.
• Four of the five confidence subindices declined. ‘Current financial conditions’ fell 1 per cent, dropping 7 per cent over the past four weeks. ‘Future financial conditions’ decreased 4 per cent, after a 3.6 per cent fall the week before.
• ‘Current economic conditions’ were down 1.5 per cent. ‘Future economic conditions’ rose slightly by 0.6 per cent.
• ‘Time to buy a major household item’ fell 0.7 per cent, declining 11 per cent over the past three weeks.
"Consumer confidence dropped 1.3 per cent last week, its fourth decline in a row and dipping to its lowest since early August," ANZ Head of Australian Economics, David Plank said.
"Inflation expectations were up 0.1 percentage points to 6.1 per cent, its highest since late March when petrol prices first peaked.
Cost of living pressures are most likely a key reason for the renewed weakness.
"Over the past four weeks, confidence has declined 7.6 per cent as household inflation expectations have risen by 1.1 percentage points. Confidence for those paying off their mortgage was down 4.7 per cent, dropping to its lowest level since the early months of the pandemic. Confidence dropped 1.1 per cent for those who own their home, while it rose 1.6 per cent for those renting."
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