Australia’s ANZ-Roy Morgan consumer confidence plunges, just below long term average

Australia’s ANZ-Roy Morgan consumer confidence plunged 6 percent last week, closing just below its long term average and at its lowest level for more than a year. All components of the survey fell sharply.

Households’ perceptions of current financial conditions fell by 7.1 percent last week, while sentiment regarding the future financial situation fell by 3.4 percent. Sentiment towards current economic conditions fell by 5.4 percent, while that towards future economic conditions fell by 6.5 percent.

The 'time to buy a household item' sub-index fell by 7.8 percent. The index is at its lowest level for three years. Four-week moving average inflation expectations edged higher at 4.5 percent.

"There was no glimmer of better news in the sub-indices, with all confidence measures down sharply. Loss of Liberal stronghold Wentworth may have highlighted political uncertainty in the public mind. Higher petrol prices may also be impacting sentiment. Certainly there was no cheer from the favourable labour market numbers released last week," said David Plank, Head of Australian Economics, ANZ Research.