Australia’s consumer confidence declines for 4th straight week

Consumer confidence in Australia edged lower for the fourth straight week in a row, according to reports from a private survey. While the headline index lowered, the overall report remained mixed. The indicators of current conditions were largely unchanged, while most forward-looking indicators fell.

ANZ-Roy Morgan Australian consumer confidence edged lower 0.3 percent during the week ending July 17. The headline index is now 3.3 percent lower than 4 weeks ago. Assessment of current finances edged higher, compared to that for future finances.

Household views on current finances were higher by 0.2 percent, while outlook for future finances fell 1.8 percent. In aggregate, the assessment of consumer finances has fallen by only 1.7 percent in the past four weeks despite heightened uncertainty, following global political unrest, financial instability and Brexit.

Consumers’ views on the 12-month economic outlook rose by 3.1 percent last week, only partly reversing the previous week’s fall. Views on the 'economic outlook over the next five years' declined by 1.8 percent. In aggregate, the assessment of the economic outlook has dropped 4.6 percent over the past four weeks, pointing to a larger impact from increased uncertainty, ANZ reported.

"We think the relative resilience of sentiment reflects strength in the housing market, low interest rates and ongoing jobs growth, although last week’s employment report confirmed that the pace of improvement in the labor market has cooled from last year," said Felicity Emmett, Head, Australian Economics, ANZ.

Meanwhile, consumers’ views on whether 'now is a good time to buy a major household item' fell by 0.3 percent. This index has been steadily declining over the past four weeks and it is now 4.2 percent lower than a month ago.