Consumer confidence: six-month low
• Consumer confidence declined 3.5pts last week to 77.0pts. The four-week moving average fell 0.8pts to 79.9pts.
• ‘Weekly inflation expectations’ fell 0.2pts to 4.8 per cent, while the four-week moving average was unchanged at 4.9%.
• ‘Current financial conditions’ (over last year) dropped 4.2pts, while ‘future financial conditions’ (next 12 months) declined 4.9pts.
• ‘Short term economic confidence’ (next 12 months) was down 5.6pts and ‘medium term economic confidence’ (next five years) fell 1.4pts.
• The ‘time to buy a major household item’ subindex softened 1.5pts.
ANZ Economist, Madeline Dunk said: “ANZ-Roy Morgan Australian Consumer Confidence recorded its largest weekly fall of the year to drop below 80pts for the first time in six months. There were broad-based declines across all subindices, possibly in response to last week’s GDP data which confirmed Australia’s economic growth is very weak. Households were particularly wary about the year ahead, with subindices for the 12-month outlook for the economy and households’ own financial situation recording their largest weekly declines of the year. This leaves both subindices at their lowest levels since November.
Across the housing cohorts, confidence is at a 2024 low for households with a mortgage and those who own their home outright, but not for renters, despite a 6.3pt fall in confidence last week.”