Consumer confidence: another 2024 low
• Consumer confidence was virtually unchanged, decreasing 0.3pts to 80.2 pts. The four-week moving average fell 0.8 pts to 80.5 pts.
• ‘Weekly inflation expectations’ fell 0.2ppt to 4.8%, while the four-week moving average was down 0.1ppt to 5.0%.
• ‘Current financial conditions’ (over last year) increased by 1.2pts and ‘future financial conditions’ (next 12 months) rose 0.6pts.
• ‘Short term economic confidence’ (next 12 months) were up 1.9pts and ‘Medium term economic confidence’ (next five years) decreased by 1.0pt.
• The ‘time to buy a major household item’ subindex was down 4.4pts.
ANZ Economist, Madeline Dunk said: “ANZ-Roy Morgan Consumer Confidence is very weak, sitting at its lowest level for the year. Despite the RBA keeping the cash rate unchanged at last week’s meeting, consumer confidence fell 3.8pts for those paying off a mortgage. Confidence amongst this group is at a 2024 low, and is once again weaker than confidence amongst renters. This may be linked to recent discussion that rates will remain higher for longer. Within the subindices, confidence about the five-year outlook for the economy fell to its lowest level for the year. Similarly, the time to buy a major household item index was also at a 2024 low.
We’ll be looking to see if confidence picks up following tonight’s Budget, which will contain a range of cost-of-living measures.”