The index decreased in all states except Victoria and Queensland with more people expecting inflation to become a concern indicated in the “Weekly inflation expectations” that rose 0.1 percentage points to 6.1 per cent.
Four of the five confidence subindices declined including “Current financial conditions” that fell 1 per cent, dropping 7 per cent over the past four weeks.
Fewer people were also feeling confident about their future financial status with “Future financial conditions” decreasing 4 per cent, after a 3.6 per cent fall the week before.
There was less optimism in the current state of the economy with “Current economic conditions” falling 1.5 per cent although “Future economic conditions” rose slightly by 0.6 per cent.
“Consumer confidence dropped 1.3 per cent last week, its fourth decline in a row and dipping to its lowest since early August,” ANZ head of Australian economics, David Plank said.
“Inflation expectations were up 0.1 percentage points to 6.1 per cent, its highest since late March when petrol prices first peaked. Cost of living pressures are most likely a key reason for the renewed weakness.
“Over the past four weeks, confidence has declined 7.6 per cent as household inflation expectations have risen by 1.1 percentage points. Confidence for those paying off their mortgage was down 4.7 per cent, dropping to its lowest level since the early months of the pandemic. Confidence dropped 1.1 per cent for those who own their home, while it rose 1.6 per cent for those renting.”
