Consumer Confidence fell to its lowest since records began in 1973

Consumer confidence fell 5.4 points last week to 63.1 points. The four-week moving average fell 4.3 points to 70.5 points.

‘Weekly inflation expectations’ increased 0.2 percentage point to 6.9%, while the four-week moving average rose from 5.8 per cent to 6.3 per cent.

‘Current financial conditions’ (over the last year) declined 6.0pts, while ‘future financial conditions’ (next 12 months) decreased 9.0pts.

‘Short-term economic confidence’ (next 12 months) was down 3.9 points, and ‘medium-term economic confidence’ (next five years) lifted 1.1 points.

The ‘time to buy a major household item’ subindex dropped 9.5 points.

"ANZ-Roy Morgan Australian Consumer Confidence fell to its lowest since records began in 1973.," said ANZ economist, Sophia Angala. "The impacts of the Middle East conflict on oil prices and the economic outlook are likely behind the drop, along with the RBA’s decision last week to increase the cash rate to 4.10 per cent.

"With very large increases in petrol prices through March, inflation expectations rose to an all-time high last week. Household confidence in their current and future finances weakened sharply, as did the ‘time to buy a major household item’ subindex, which is at its lowest since late March 2020 when pandemic lockdowns were announced.

"Concerns around upside inflation risks and urgency to keep inflation expectations anchored are likely to support a final 25 basis point rate hike by the RBA in May, taking the cash rate to 4.35 per cent."

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