Australia's ANZ consumer confidence slips 1.9 pct, partly reversing previous week’s gain

Australia's headline consumer confidence dropped 1.9 percent last week partly reversing the previous week’s gain. ANZ-Roy Morgan Australian consumer confidence index is now back down below its long run average.

Most of the sub-indices were in negative territory with only one of the five sub-indices recording a rise. Households’ expectations for economic conditions next year fell 1.9 percent, while expectations for economic conditions over the next five years dropped a sharp 4.1 percent, to be at its lowest level since September 2015.

Households’ views towards their current finances fell a modest 0.7 percent, while views about future finances improved 2.7 percent, to the highest level since February. Inflation expectations were unchanged at 4.3 percent, with the four week moving average holding steady at 4.3 percent.

"In our view, a reassertion of the downward trend in the unemployment rate along with some improvement in wage growth will likely be required to materially lift consumer confidence,” said ANZ in a report.