Consumer Confidence falls after RBA rate hike

Consumer confidence fell 3.1 points last week to 64.1 points. The four-week moving average ticked down 0.1 points to 65.9 points.

‘Weekly inflation expectations’ eased 0.3 percentage points to 6.4 per cent, while the four-week moving average fell 0.1 percentage points to 6.7 per cent.

‘Current financial conditions’ (over the last year) dropped 4.1 points, while ‘future financial conditions’ (next 12 months) decreased 2.8 points.

‘Short-term economic confidence’ (next 12 months) declined 1.0pts, and ‘medium-term economic confidence’ (next five years) was down 4.6 points.

The ‘time to buy a major household item’ subindex fell 3.4 points.

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"ANZ-Roy Morgan Australian Consumer Confidence fell 3.1 points last week, as the RBA increased the cash rate to 4.35 per cent," ANZ Economist, Sophia Angala said.

"At 64.1 points, confidence is at its fourth-lowest level since the series began in 1973. All subindices declined, led by a sharp fall in household confidence in personal finances. Weekly inflation expectations fell to their lowest level since early March, likely reflecting the fall in petrol prices in recent weeks.

"While household spending data for March suggests higher fuel prices in the month had not yet dampened consumer spending, consumer confidence at a record low points to softer consumer demand ahead. ANZ Research expects activity data are likely to be sufficiently soft to keep the RBA cash rate on an extended hold at 4.35 per cent over the near term."

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