Consumer confidence dips slightly

Consumer confidence fell 0.2 per cent last week, with the details mixed. Confidence is higher than this time last year, with sentiment in January 2020 impacted by the bushfires.

‘Current financial conditions’ deteriorated 3.0 per cent, while ‘future financial conditions’ improved 2.4 per cent. ‘Current economic conditions’ rose 1.2 per cent, while ‘future economic conditions’ inched up 0.5 per cent.

‘Time to buy a major household item’ was down 2.4 per cent. The four-week moving average of ‘inflation expectations’ was down 0.1 percentage point to 3.6 per cent.

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"Consumer confidence was close to unchanged over the weekend, consolidating at an above neutral level – though below the long run average," ANZ Head of Australian Economics David Plank said.

"Sentiment is higher than a year ago, but the comparison reflects the impact of the bushfires in late 2019 and early 2020. Within the detail, ‘future financial conditions’ stood out with a gain of 2.4 per cent and remain well above the long-run average."

"Inflation expectations have pulled-back a touch from their recent high."

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