Australia ANZ-Roy Morgan consumer confidence falls again this week

ANZ-Roy Morgan Australian Consumer Confidence fell again this week, the headline index dropping by 1.8 percent from last week to 111.7 and below the long term average of 112.9. Three out of the five sub-indices posted declines, with the sharpest fall in current economic conditions.

Consumers’ sentiment towards current economic conditions remained sombre, with a fall of 6 percent coming straight after the prior week’s sharp decline of more than 10 percent. In contrast, the measure of future economic conditions was up touch to 105.1, just above the long term average for the first time since March.

Attitudes toward current financial conditions fell 2 percent, largely reversing the previous week’s improvement. On the flipside, views towards future financial conditions were up 1.9 percent but are still below the long-run average – if only just.

The ‘time to buy a major household item’ fell a 3.0 percent last week and is now well below its long-run average. Inflation expectations edged up to 4.6 percent, a third consecutive weekly rise. The four week moving average stayed at 4.4 percent.

"In terms of the most recent move it is possible that the increased tensions around North Korea may have impacted sentiment. More broadly, we think it will be difficult for consumer confidence to sustain any material rise until we see a lift in wage growth. Especially when we consider the high debt levels of households and the pressures they are facing from rising energy costs, among other things," said David Plank, Head of Australian Economics, ANZ Research.

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