Consumer confidence consolidates

• Confidence fell marginally by 0.3% last week, consolidating at an above average level.

• Financial conditions were mixed with current finances up by 0.2%, while future financial conditions fell 1.2%.

• Economic conditions were also mixed. Current economic conditions rose 4.1%, largely reversing the prior week’s fall of 5.5%, while future economic conditions were down 3.6%. Both the sub-indices were well above their long term averages. 

• The ‘time to buy a household item’ fell 0.3% compared to a rise of 4% last week. The four-week moving average for inflation expectations fell by 0.1ppt to 4.0%.  

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ANZ Head of Australian Economics, David Plank, commented:

“Confidence was marginally down last week, though it is still well above average levels. There was not much in the way of local economic news to react to last week. It seems consumer sentiment is in a holding pattern for now. This pattern is likely to be disrupted on Tuesday afternoon, with the RBA expected to either cut the cash rate for the first time since August 2016 or clearly signal that a rate cut is on the cards.” 

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