Consumer confidence: pullback

• Consumer confidence eased 2.9pts last week to 82.0pts. The four-week moving average fell 0.3pts to 83.3pts.
• ‘Weekly inflation expectations’ declined 0.3ppt to 4.6%, while the four-week moving average was steady at 4.7%.
• ‘Current financial conditions’ (over the last year) fell 6.7pts, while ‘future financial conditions’ (next 12 months) eased 1.6pts.
• ‘Short-term economic confidence’ (next 12 months) fell 2.1pts and ‘medium-term economic confidence’ (next five years) declined by 1.5pts.
• The ‘time to buy a major household item’ subindex fell 2.3pts.

ANZ Economist, Madeline Dunk said: “ANZ-Roy Morgan Australian Consumer Confidence declined 2.9pts last week following the RBA’s decision to keep the cash rate on hold. The drop in confidence was broad-based, but there was a particularly large fall in households’ confidence in their current financial conditions. The subindex declined 6.7pts, its largest weekly fall in more than a year.

Inflation expectations declined 0.3ppts after the monthly CPI indicator showed that headline inflation fell back within the RBA’s 2-3% target band. At 4.6%, inflation expectations are at their equal lowest since September 2021. There’s also been movement across the housing cohorts, with the four-week moving average of confidence amongst renters back below that of households paying off a mortgage. Those who own their home outright remain the most confident.”

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