Mar 07, 2023
Consumer confidence plunges
Consumer confidence dropped 2.9 points last week to 77.0, its weakest result since early April 2020. Confidence declined across all mainland states.
‘Weekly inflation expectations’ increased by 0.5 percentage points to 5.7 per cent. Its four-week moving average remained steady at 5.3 per cent.
Three of the five subindices were down. ‘Current financial conditions’ declined 6.4 points, falling to its lowest level in over twenty years. ‘Future financial conditions’ were down 4.4 points.
‘Current economic conditions’ rose slightly by 0.3 points. ‘Future economic conditions’ fell 4.3 points. ‘Time to buy a major household item’ remained practically unchanged with an increase of 0.1 points.
"Consumer confidence dropped to its lowest level since April 2020, after the RBA announced a 25 basis-point increase in the cash rate in March," ANZ Senior Economist Adelaide Timbrell said.
"The sharpest decline in consumer confidence was in the current finances subindex, which dropped to its lowest since 2001. Confidence about future finances declined to its sixth-lowest since the COVID outbreak."
"Inflation expectations also increased post-hike, by 0.4 points. Confidence among those paying off their mortgages increased 1.7 points after a sharp drop last week and are still the least confident of the housing cohorts."
"Those who own their home outright and renters reported sharp decreases of 4.1 points and 7.9 points respectively."