Australian weekly consumer sentiment eases on economic outlook concerns

The Australian consumer sentiment eased last week. The ANZ-Roy Morgan Australian weekly consumer confidence index dropped 1.1 percent. The financial conditions sub-indices were the only indices that underpinning the index.

Current finances index rose 5 percent, reversing most of the recent falls, while future finances rose 0.4 percent for its third weekly rise. The combined economic conditions subindex registered its fourth weekly fall and continues to be a considerable drag on overall sentiment. Current economic conditions dropped 4 percent to its lowest level since early 2017, while future economic conditions lost 3.8 percent.

The ‘Time to buy a household item’ dropped 3.3 percent last week as compared with the prior rise of 5.1 percent. The four-week average for inflation expectations came in at 4.1 percent, though weekly reading dropped below 4 percent after five weeks of stability.

Last week, consumer sentiment eased as concerns regarding the economic outlook undermined a more upbeat assessment of personal finances. Uncertainty regarding global trade is likely a factor, noted ANZ Head of Australian Economics, David Plank.

“At the same time, accommodative monetary policy and tax cuts are fuelling better financial conditions. The drop in weekly inflation expectations comes after a period of stability and ahead of the release of the Q3 CPI. We expect that report to confirm that inflation pressures remain subdued”, added David Plank.