Consumer confidence: confidence down a notch

• Confidence fell marginally by 0.3% last week, consolidating at an above average level.
• Current finances were up by 2.6% for the week, while future finances gained 2.4%. Both are above average.
• In contrast, the economic conditions sub-indices were down – with current economic conditions falling 4.3%, closing below its long-term average, while future economic conditions lost 0.3%.
• The ‘time to buy a major household item’ index fell 2.6%, its second consecutive decline. The four-week moving average for inflation expectations was stable at 4.0%.

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ANZ Head of Australian Economics, David Plank, commented:

“Confidence was down marginally last week, essentially consolidating after the previous week’s decline. The RBA Board’s statement on Tuesday was cautious on the outlook, with the RBA’s forecasts on Friday showing a downward revision to the near-term outlook but still a recovery after the weakness in the second half of 2018 and the first half of 2019. Continued volatility in equity markets likely had an impact on sentiment, as likely did the news that Australian bond yields have fallen to record lows. The impact of tax cuts appears to be showing up in the financial conditions subindices, with more people saying they are better off financially.” 

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