Consumer confidence hits three-year low

Consumer confidence decreased by 3.1 points last week. Among the mainland states, confidence rose only in New South Wales, while it fell in Victoria, Queensland, South Australia and Western Australia.

‘Weekly inflation expectations’ were unchanged at 5.5 per cent, while the four-week moving average rose from 5.3 per cent to 5.4 per cent. ‘Current financial conditions’ declined 1.9 points and is 0.1 point off its record low. ‘Future financial conditions’ rose 0.1 points but remained below 90 for the second time since late March 2020.

‘Current economic conditions’ fell 3.5 points, while ‘future economic conditions’ were down 3.1 points. ‘Time to buy a major household item’ plunged 7.6 points, after three straight weekly gains with a cumulative increase of 6.3 points.

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"Consumer confidence fell to its lowest since April 2020 and was among the four weakest results since the pandemic," ANZ Senior Economist Adelaide Timbrell said. "Confidence has been at extremely weak levels for around 15 weeks but has fallen 7.2 points further in the last six weeks.

"Confidence about economic conditions, both current and future, fell most sharply last week following the latest RBA cash rate increase to 4.1 per cent.

"Confidence about current financial conditions, future financial conditions and the ‘time to buy a major household item’ index are all within 0.1 percentage points of their lowest since March 2020. Confidence fell among renters, outright owners and those paying off their homes, though those paying off their homes fell to a record low."

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