Consumer confidence softens further

Confidence fell 0.5 per cent, adding to last week’s 0.9 per cent fall, despite unemployment falling sharply to 5.8 per cent. The subindices registered mixed results.

‘Current financial conditions’ gained 2.2 per cent, while ‘future financial conditions’ fell 2.6 per cent. ‘Current economic conditions’ weakened 2.0 per cent and ‘future economic conditions’ fell 0.8 per cent.

‘Time to buy a major household item’ gained 1.6 per cent. ‘Weekly inflation expectations’ remained at 3.8 per cent, keeping the four-week moving average steady at 3.8 per cent.

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"The very positive news about the labour market in February, with a strong gain in jobs and the much bigger than expected drop in the unemployment rate have not boosted consumer confidence," ANZ Head of Australian Economics David Plank said.

"The torrential downpours and overflowing dams causing flash floods along parts of the east coast possibly dampened sentiment,

as evident from the index falling 5.9 per cent in Brisbane and 2.6 per cent in Sydney."

"Along with the harsh weather conditions, the JobKeeper program approaching its end may also be causing some apprehension."

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