Confidence falters
ANZ-Roy Morgan Australian Consumer Confidence was down 1.1% last week; The financial conditions subindices were the only indices supporting the index.
Current finances was up by a healthy 5%, reversing much of the recent falls, while future finances gained 0.4% for its third weekly rise.
The combined Economic conditions subindex registered its fourth weekly decline and remains a significant drag on overall sentiment. Current economic conditions fell 4% to its lowest level since early 2017, while future economic conditions lost 3.8%.
The 'Time to buy a household item' was down 3.3% last week compared to a gain of 5.1% previously.
The four-week average for inflation expectations was stable at 4.1%, though weekly reading fell below 4% after five weeks of stability.
ANZ Head of Australian Economics, David Plank, commented:
Consumer confidence lost ground last week as concerns about the economic outlook trumped a more positive assessment of personal finances. Uncertainty around global trade is likely a factor.
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.
