According to the latest ANZ Consumer Confidence Index, all indices experienced a downturn.
“Weekly inflation expectations” increased 0.2ppt to 5.7 per cent, while its four-week moving average also rose 0.2ppt to 5.5 per cent.
“Current financial conditions” dropped 0.2 per cent, its fourth consecutive weekly decline. “Future financial conditions” fell 4.3 per cent after a 5.5 per cent decrease the week before.
More people were feeling the looming interest rate rise and inflation with “current economic conditions” plunging 9.4 per cent after a 3.5 per cent gain over the past three weeks. Future economic conditions were down 2.1 per cent.
And consumers are less eager to buy a major household item with that index dropping 4.7 per cent, after a 10.1 per cent increase over the previous two weeks.
“Consumer confidence dropped 4.1 per cent last week, most likely on cost-of-living concerns as inflation expectations rose to 5.7 per cent, its highest weekly reading since early April. Consumers are especially pessimistic about the current economic outlook and their current financial circumstances,” ANZ head of Australian economics, David Plank said.
“Confidence dropped a similar amount for both consumers paying off their home loan as well as for those who own their home: 6.2 per cent and 6.5 per cent, respectively. Among the major states, confidence dropped sharply in NSW and Queensland by 7.5 per cent and 7.2 per cent, respectively. Confidence dropped 1.0 per cent in Victoria and 0.5 per cent in WA but increased 7.9 per cent in SA.”
