Confidence fell only 0.4 per cent over the past week – a somewhat surprising result given the news flow around the outbreak of the coronavirus. The Federal Government’s fiscal package may have contributed to the resilience.
‘Current economic conditions’ fell 9.3 per cent, adding to a decline of 8 per cent and 16.6 per cent in the previous two readings. ‘Future economic conditions’ strengthened for the second week in a row rising 2.1 per cent.
Financial conditions subcomponents diverged, with ‘current financial conditions’ gaining 3 per cent while ‘future financial conditions’ declined 0.5 per cent.
‘Time to buy a major household item’ fell by 0.2 per cent, its third straight weekly loss and is at an 11-year low. The four-week moving average for ‘inflation expectations’ was stable at 4.1 per cent.