Still weak
- Consumer confidence rose 2.0pts last week to 73.9pts. The four-week moving average dropped 0.6pts to 74.6pts.
- ‘Weekly inflation expectations’ fell 0.4ppt to 5.9%, while the four-week moving average was unchanged at 6.1%.
- ‘Current financial conditions’ (over the last year) lifted 6.0pts, and ‘future financial conditions’ (next 12 months) increased 2.4pts.
- ‘Short-term economic confidence’ (next 12 months) was up 0.9pts, while ‘medium-term economic confidence’ (next five years) ticked up 0.2pts. • The ‘time to buy a major household item’ subindex gained 0.4pts. ANZ-Roy Morgan Australian Consumer Confidence and inflation exp
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ANZ Economist, Sophia Angala, commented:
ANZ-Roy Morgan Australian Consumer Confidence rose 2.0pts to 73.9pts last week, partially reversing the prior week’s fall, but remained well below the neutral 100 level. The lift was driven by improved confidence in personal finances, though financial confidence remains historically weak (Figure 3), likely reflecting inflationary pressures, global uncertainty and higher rates.
Last week, RBA Deputy Governor Hauser noted that the RBA is alert to upside inflation risks and that the Board is willing to raise rates further if required. This may have driven the decline in confidence across mortgage holders last week, while confidence increased across outright homeowners and renters. We expect the RBA to increase the cash rate by 25bp in November.
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