Consumer confidence declines

Consumer confidence decreased by 1.1 points last week, bringing the calendar-month average to its lowest point since December 1990.

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’ rose 0.2 percentage points to 5.3 per cent, while its four-week moving average increased 0.1 percentage points to 5.3 per cent.

‘Current financial conditions’ fell 4.3 points, with the index below 70 for a fourth-consecutive week. ‘Future financial conditions’ softened 0.3 points.

‘Current economic conditions’ declined 2 points, while ‘future economic conditions’ fell 0.6 points after a 2.7-point loss the week before. ‘Time to buy a major household item’ liftec 1.3 points.

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“Average confidence for May 2023 (76.8) was the weakest calendar-month average since December 1990, as cost-of-living pressure continues to impact households," ANZ Senior Economist Adelaide Timbrell said.

"The weekly result was the fifth worst since January 2020 and represented the 13th consecutive week below 80. Confidence about current financial conditions fell the most during the week and was at its secondweakest point since the beginning of 2020 (first-weakest being earlier in May 2023).

"Those paying off their homes still have far lower average confidence than renters and outright owners, despite housing prices lifting since mid- February."

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