Consumer confidence drops further

Consumer confidence fell 0.8 points last week to 86.9 points. The four-week moving average rose 0.1 points to 87.4 points.

‘Weekly inflation expectations’ rose 0.2 percentage point to 4.7 per cent, while the four-week moving average was steady at 4.6 per cent.

‘Current financial conditions’ (over the last year) rose 1.5 points, while ‘future financial conditions’ (next 12 months) declined 1.5 points.

‘Short-term economic confidence’ (next 12 months) fell 3.3 points and ‘medium-term economic confidence’ (next five years) declined 3.5 points.

The ‘time to buy a major household item’ subindex rose 3.2 points.

"Australian Consumer Confidence has fallen 2.9 points over the past fortnight but is still 1.8 points higher than before the Reserve Bank of Australia cut the cash rate. Last week’s 0.8 point decline may be partly attributable to ex-Tropical Cyclone Alfred and its impacts on the communities of southern Queensland and northern New South Wales," ANZ Economist, Madeline Dunk said. 

"Queensland confidence fell more than other mainland states. Uncertainty about the global economic environment may have also played a role, with household confidence in the five-year economic outlook falling 3.5 points.

"Confidence in the 12-month outlook for the economy also declined 3.3 points. Inflation expectations increased last week and are up 0.5 percentage point over the past fortnight.

"However, it is worth noting that expectations have moved off roughly a three and a half year low of 4.2 per cent." 

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