Confidence fell 0.6 per cent last week, reversing a bit over half the prior week’s increase. This continues the recent sawtooth pattern. Confidence remains well below average.
In a repeat of last week’s pattern, there were largely oversetting moves within the sub-components of financial and economic conditions. ‘Current financial conditions’ dropped 3 per cent, while ‘future financial conditions’ was up 3.8 per cent.
In a similar pattern, the 4.1 per cent drop in ‘current economic conditions’ didn’t quite offset the 5.3 per cent lift in ‘future economic conditions’.
‘Time to buy a major household item’ fell 5 per cent, to its lowest level since mid-December. The four-week moving average of ‘inflation expectations’ was unchanged at 4.1 per cent.