Consumer confidence: consumer sentiment down 1.5%

• ANZ-Roy Morgan Australian Consumer Confidence fell 1.5%, reversing the gains seen over the previous two weeks. Consumer sentiment remains well above its long-run average, however.
• Financial conditions sub-indices were mixed, with current financial conditions down 0.7%, while future financial conditions were up 1.7%.
• Economic conditions readings were also mixed, with current economic conditions falling by a sharp 6% while future economic conditions were up a modest 0.3%.
• The ‘time to buy a household item’ sub-index was down 2.8%, its second straight loss after it made a solid gain in the second half of November. Four-week moving average inflation expectations were stable at 4.2 %.

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ANZ’s Head of Australian Economics, David Plank, commented:
 

“Consumer sentiment ended up in negative territory last week amidst a spate of data releases. A more cautious RBA statement on Tuesday and then the soft Q3 GDP figures Wednesday may have impacted consumer views on current

economic conditions, which fell a sharp 6%. Global equity volatility may also have impacted sentiment. On the other hand, current financial conditions were only down a touch after a very strong gain the previous week and future financial conditions were up. This suggests consumers are still feeling good about their own circumstances, which is somewhat at odds with the weak wage data in the Q3 GDP report.”

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