Consumer confidence takes a break

Confidence has taken a pause, falling 1.4 per cent last week after two weekly gains. With the exception of current economic conditions, which rose 2.1 per cent, all the sub-indices were negative.

Current financial conditions fell by 4.7 per cent, its first decline after four consecutive increases, while future financial conditions were down 2.8 per cent.

Current economic conditions was positive for the third consecutive week, while future economic conditions were down 0.3 per cent after rising 4.5 per cent in the previous reading.

‘Time to buy a household item’ was down 1.3 per cent while the four-week moving average for inflation expectations fell by 0.1 percentage point to 4.0 per cent.

“Confidence shows signs of consolidation at an above average level after the gains made on the back of the election, talk of interest rate cuts and modest regulatory respite for the housing sector,” ANZ Head of Australian Economics, David Plank said.

“This week will be quite impactful for the index, as the RBA will be announcing its decision on interest rates beside a plethora of crucial economic data such as the current account, retail sales and GDP.”

“Weekly inflation expectations remained at 3.8 per cent for the second week, meaning the four-week moving average will likely drop below 4 per cent next week.”