Consumer Confidence falls again

ANZ-Roy Morgan Australian Consumer Confidence fell for the second week in a row, down a sharp 3.5% this week to 114.3. Australia Economy Concept

I track both Consumer and Business Confidence as part of my research on the many factors affecting our property markets.

There is a strong link between consumer confidence and the strength of the property market – when people feel confident, particularly about their jobs and employment, but also about the future, they make big purchasing decisions like moving house and buying investments.

And when they feel less confident, they sit back and keep their hands in their pocket.

This week’s sizeable decline more than offset the jump in confidence three weeks ago – which took the index to a 33 month high.

The decline in confidence was largely driven by households’ views over the economic outlook.

Households’ views of the 12 month economic outlook fell a sharp 7.6%, while views of the five year economic outlook dipped 2.7%. 

Looking through weekly volatility, both indices have been rising since early 2016 and remain close to their long-run averages.

Consumers were also a touch more pessimistic about their finances.

Consumers’ views of their current finances fell 2.7%, while views of future finances ticked down 1.2%.

Despite the drop in overall confidence, consumers’ views towards their own finances remain well above their long run average and in an upward trend.

Views about personal finances are most likely to impact household spending decisions, and at current levels suggest household consumption should continue to grow at a relatively solid pace.

Household views on whether ‘now is a good time to buy a household item’ fell 3.9%.

ANZ Senior Economist Jo Masters commented: 17072667_l

“The sharp fall in ANZ-Roy Morgan Australian Consumer Confidence is disappointing. It erases the recent gains and brings confidence back to its lowest level in three months. Moreover, while confidence remains well above its long run average, the uptrend looks to be losing momentum.

“The recent volatility in consumer confidence has been driven by large swings in views about the economic outlook. In contrast, consumers’ views toward their own finances remain upbeat. This is particularly encouraging as this sub-index is the one most closely correlated with consumer spending.

“This week’s GDP report and RBA meeting will likely shape the news flow in the coming days and have the potential to influence consumers’ confidence over the coming week.”



Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.

Michael Yardney


Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit

'Consumer Confidence falls again' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts