Consumer confidence declined

Consumer confidence decreased by 3.2pts last week to 83.6, its lowest level so far this year. Confidence declined across all five mainland states.

'Weekly inflation expectations' rose 0.3ppt to 5.4%. Its four-week moving average increased by 0.1ppt to 5.4%.

All the five confidence subindices registered losses. 'Current financial conditions' fell 3.2pts. 'Future financial conditions' dropped 4.7pts falling below the neutral level of 100 for the first time this year.

'Current economic conditions' decreased 1.7pts, while 'future economic conditions' were down 3.2pts.

'Time to buy a major household item' declined 2.9pts.

"Consumer confidence experienced its biggest weekly fall since early August 2022," ANZ Senior Economist Adelaide Timbrell said.

"Confidence about current and future finances fell sharply, perhaps sparked by concerns about the extent of cash rate rises after the Q4 inflation print."

"Household inflation expectations drifted up but are still lower than expectations during the final three months of 2022. Average confidence among homeowners paying off their mortgages fell less than other housing status cohorts, though still ended the week with lower confidence than renters and outright homeowners."

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