Consumer confidence remains very low

Consumer confidence decreased by 0.5pts last week to 76.5, its third consecutive week below 80. Among the mainland states, confidence rose in Victoria, SA, and WA, while it fell in NSW and Queensland.

‘Weekly inflation expectations’ increased by 0.2ppt to 5.9%, its highest since mid-December. Its four-week moving average rose 0.2ppt to 5.5%.

Three of the five subindices were down. ‘Current financial conditions’ rose 0.9pts, after a cumulative fall of 8.6pts over the previous three weeks. ‘Future financial conditions’ softened 0.3pts.

‘Current economic conditions’ fell 0.7pts. ‘Future economic conditions’ were up 1pt.

‘Time to buy a major household item’ dropped 3.5pts to its lowest since early April 2020. 

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"Consumer confidence decreased for a fourth consecutive week and remains at very low levels. The index, in four of the past five weeks, was among the ten worst results since the COVID outbreak," ANZ Senior Economist Adelaide Timbrell said.

"Confidence among those paying off their mortgages fell 4.3pt and are at their lowest since the beginning of the monetary tightening cycle. Confidence among renters and outright homeowners rose a little."

"The proportion of people saying it is ‘a bad time to buy a major household item’ rose to 55%, its highest since early April 2020. Confidence about current finances increased 0.9pts but was still at its second lowest level since the initial COVID outbreak in Australia."

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