Consumer confidence tumbles

• ANZ-Roy Morgan Australian Consumer Confidence nosedived to 109.5, a fall of 4.6 per cent from the previous week’s reading. All the sub-indices were in the negative, with three components falling more than 5 per cent. The decline has also resulted in the headline index and each sub-index closing below their long-run averages.

• Current financial conditions fell by 2.9 per cent, while future financial conditions took a bigger hit, falling 5.4 per cent.

• The economic conditions sub-indices were also in the negative, with current economic conditions falling a sharp 7.9 per cent and future economic conditions declining by 5.4 per cent.

• The ‘time to buy a household item’ fell by 1.7 per cent vis-à-vis a decline of 2.1 per cent in the previous reading.

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

“Confidence took a significant hit last week, falling well below average. We think the soft GDP report and, perhaps more importantly, the focus on a 'per-capita recession' were the primary factors in the plunge."

"The last such big decline in confidence was the weekend of the Wentworth by-election, something we thought was unlikely to have

a lasting impact on sentiment. This decline could be longer-lasting as it appears to be more related to underlying economic conditions."

"If it proves to be a sustained decline then it is yet more bad news about a household sector that is already under pressure. No doubt the Reserve Banbk of Australia will take note.”

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