Consumer confidence drops to four-year low

The ANZ-Roy Morgan Australian Consumer Confidence index has continued its losing streak, falling 2.8 per cent last week to its lowest level in more than four years. Weakness is across the board.

Current financial conditions fell 0.1 per cent, while future financial conditions plunge 4.4 per cent. Current financial conditions are still above average but future conditions are now below.

Current economic conditions fell by 1.3 per cent last week to a four-year low, while future economic conditions declined 4.6 per cent and are now at an all-time low.

The ‘time to buy a household item’ was also at a multi-year low, falling 3.3 per cent. The four-week moving average of inflation expectations was stable at 3.9 per cent.

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"Spurred by weakness in economic conditions and the ‘time to buy a household item’ sub-index, overall consumer confidence fell further and is now at its lowest level in more than four years," ANZ Head of Australian Economics David Plank said.

"The weakness continues to be driven by a very pessimistic economic outlook. Indeed, consumer views on the future economic outlook are now at their lowest in the history of the survey."

"This now seems to be impacting sentiment toward consumers’ own finances, with future expectations of financial conditions now below average."

"Consumers are much happier about their current financial conditions but it will be difficult for this to dominate such negative expectations about the economic outlook."

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