Consumer confidence: another three-year low

Consumer confidence edged lower by 0.3pts. Among the mainland states, confidence rose in Victoria, SA and WA, while it fell in NSW and Queensland.

‘Weekly inflation expectations’ were unchanged at 5.5%, while the four-week moving average rose from 5.4% to 5.5%.

‘Current financial conditions’ declined 2.8pts and fell below 60 for the first time on records since January 2001. ‘Future financial conditions’ softened 0.4pts and remained below 90 for a third straight week.

‘Current economic conditions’ fell 1.2pts its fourth consecutive weekly decline. ‘Future economic conditions’ were down 1.7pts.

‘Time to buy a major household item’ jumped 5.1pts partially offsetting the 7.6pt fall the week before.

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ANZ Senior Economist Adelaide Timbrell said: “Consumer confidence was again at its weakest since April 2020 and among the four weakest results since the pandemic began. Notably, confidence about ‘current financial conditions’ fell to a new low, after declining 10.6pts in the past four weeks. This is the third consecutive week with ‘future financial conditions’ below 90, the longest it has been this low on record.

“‘Future economic conditions’ is at its lowest since early April 2020, as is confidence among outright homeowners, which fell for a fifth straight week. Confidence declined among renters to its recent all-time low from mid-May, while it rose for those paying off their homes.”

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