Modest decline in confidence

Confidence was down 1.5 per cent last week following a decline of 1.1 per cent the previous week. All of the confidence sub-indices were down, with the exception of a flat ‘time-to-buy’ reading.

Current finances declined by 2.7 per cent, while future finances dropped by 1.5 per cent. This compares to up-ticks of 3.7 per cent and 1.3 per cent respectively for the previous week.

The economic conditions sub-indices were also down; with current economic conditions falling 1 per cent and future economic conditions dropping by 2.6 per cent. This week’s moderation comes on the back of falls of 3.6 per cent and 1.7 per cent respectively last week.

The ‘time to buy a major household item’ index was unchanged and the four-week moving average for inflation expectations was flat at 4 per cent.

“Confidence was down modestly for a second week,” ANZ Head of Australian Economics David Plank said. “The developments in the week were mixed. The NAB monthly business survey remained soft, though some of the details on the labour market were better.”

“The strong bounce in ANZ Job Ads was not reflected in consumer sentiment. On a lighter note, the disappointing (for Australians) outcome of the England-Australia cricket world cup match could have dented the confidence of some respondents.”

“More seriously, it is pleasing that overall confidence remains above average with respondents still reasonably positive about their own financial circumstances.”