Consumer confidence: consolidates after a rise

ANZ-Roy Morgan Australian Consumer Confidence fell by 0.7% last week, partially reversing the rise of 1.5% in the previous week. The fall was due to the declines in sentiment regarding economic conditions and buying a major household item.

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

“Confidence fell slightly last week, partially retracing the previous week’s gain. Overall confidence remains above the long-run average. Importantly, consumers’ perception of the current financial situation rose a strong 3.5%. This builds on last week’s gain and takes confidence in the current financial situation to its highest level since early 2018. The continued strength of the labour market is most likely driving this improvement and appears to be more than offsetting the news of modest increases in floating mortgage rates. 

On the weak side, the ‘time to buy a household item’ subindex fell a sharp 4.0% last week to 127.8. This subindex has fallen quite sharply since late June and likely reflects an adjustment process by households in an environment of falling house prices and low wage growth.”

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