Consumer confidence dropped 1.5 per cent last week as inflation expectations hit a record high, taking the cumulative fall in confidence over the past six weeks to 10.4 per cent.
Among the mainland states, confidence increased in Victoria, Queensland and Western Australia, while it dropped in New South Wales and South Australia.
‘Weekly inflation expectations’ rose 0.2 percentage points to 6.8 per cent last week, its highest value on record (going back to 2010). Its four-week moving average rose 0.3 percentage points to 6.4 per cent.
The subindex results were mixed. ‘Current financial conditions’ rose 1.5 per cent, after a 9.6 per cent drop over the previous five weeks. ‘Future financial conditions’ gained 1 per cent, after an 11.4 per cent fall over the previous three weeks.
‘Current economic conditions’ slipped 1.6 per cent, its third straight weekly decline. ‘Future economic conditions’ lost 4.8 per cent, dropping to its lowest since mid-April 2020.
‘Time to buy a major household item’ declined 3.1 per cent.