Consumer confidence loses some sheen

ANZ-Roy Morgan Australian Consumer Confidence slipped 1.0% last week to 116.5, following a 3.2% decline in the previous week. The details were subdued, with three out of five subindices posting declines.

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ANZ’S HEAD OF AUSTRALIAN ECONOMICS, DAVID PLANK, COMMENTED

“Confidence was down again last week due to increased pessimism around Australian economic conditions and households’ current finances. The former may stem from renewed fears of a trade war as the US ended exemptions for the EU, Canada and Mexico on steel and aluminium tariffs. Meanwhile, the latter is likely weighed down by high petrol prices and concerns about falling capital city house prices.

One bright spot was a rise in views towards future finances, perhaps impacted by the Fair Work Commission’s announcement of a 3.5% (vs 3.3% last year) minimum wage hike.

Though confidence has deteriorated recently, views towards both financial and economic conditions remain above their long-term averages. Looking forward, the GDP release later this week is likely to influence confidence in the near term though global political concerns could also play a role.”

Please see the attached document for further details.