Consumer confidence at lowest since April 2020

Consumer confidence decreased by 1.8pts. Among the mainland states, confidence rose in Victoria and fell in NSW, Queensland, SA and WA.

‘Weekly inflation expectations’ was unchanged at 5.3%, while its four-week moving average fell 0.1ppt to 5.2%.

‘Current financial conditions’ dropped 5.4pts to its lowest on record since 2001. ‘Future financial conditions’ lost 4.6pts.

‘Current economic conditions’ rose 0.6pts, while ‘future economic conditions’ were up 2.6pts.

‘Time to buy a major household item’ fell 2.2 pts, its third consecutive weekly decline.

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“Consumer confidence declined to its weakest since April 2020 and stayed below 80 for an 11^th consecutive week,” said ANZ Senior Economist Adelaide Timbrell.

“‘Economic conditions’ rose, perhaps in part due to the announcement of the surplus in the federal budget on 9 May. Confidence fell for both present and future financial conditions and the subindex for whether it is a ‘good time to buy a major household item’.

“Notably, ‘current financial conditions’ fell to its lowest value on record since 2001. Among the housing cohorts, confidence fell for those renting (-4.1) and those paying off their homes (-2.2), while it rose for those who own their homes outright (+2.0).”

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