ANZ-Roy Morgan Consumer Confidence declined for the fourth week in a row, edging down 0.3% to 114.9 this week.
Consumer confidence is one of the indexes I follow closely as it has a significant bearing on our housing markets.
The headline index is now 3.3% lower than 4 weeks ago.
The report was mixed; the indicators of current conditions were largely unchanged, while most forward looking indicators fell.
- Household views on current finances edged higher last week, up 0.2%, while views towards future finances dropped by 1.8%. In aggregate, the assessment of consumer finances has fallen by only 1.7% in the past four weeks despite heightened uncertainty.
- Consumers’ views on the 12-month economic outlook rose by 3.1% last week, only partly reversing the previous week’s fall. Views on the economic outlook over the next 5 years declined by 1.8%. In aggregate, the assessment of the economic outlook has dropped 4.6% over the past four weeks, pointing to a larger impact from increased uncertainty.
- Consumers’ views on whether ‘now is a good time to buy a major household item’ fell by 0.3%. This index has been steadily declining over the past 4 weeks and it is now 4.2% lower than a month ago.
ANZ Head of Australian Economics Felicity Emmett commented:
“ANZ-Roy Morgan Consumer Confidence has fallen by 3.3% over the past four weeks, although it remains at an above average level. This suggests to us that heightened global economic and political uncertainty have had some impact on sentiment, but that the impact to date has not been large.
“We think the relative resilience of sentiment reflects strength in the housing market, low interest rates and ongoing jobs growth, although last week’s employment report confirmed that the pace of improvement in the labour market has cooled from last year.”