Consumer confidence declined 0.4 per cent last week. The length of decline now matches the one seen during the first wave of the pandemic when confidence declined for six straight weeks, though the severity of this decline has been milder – at least so far.
This week’s fall was driven by sharp weakness in economic conditions. Sentiment toward financial conditions was mixed. ‘Current finances’ declined by 0.6 per cent, while ‘future finances’ gained 1.6 per cent after three straight falls.
‘Current economic conditions’ declined for the seventh straight week, falling 5.1 per cent, while ‘future economic conditions’ fell 5.3 per cent.
‘Time to buy a household item’ gained 4.9 per cent, the rise coming after falls for five-straight weeks. ‘Inflation expectations’ fell 0.1 percentage points to 3.3 per cent (four-week moving average).