Slight fall ahead of RBA decision

Consumer confidence fell 0.6 points last week to 67.2 points. The four-week moving average rose 1.2 points to 66.0 points.

‘Weekly inflation expectations’ ticked up 0.1 percentage points to 6.7 per cent, while the four-week moving average eased 0.1 percentage points to 6.8 per cent.

‘Current financial conditions’ (over the last year) eased 0.6 points, while ‘future financial conditions’ (next 12 months) increased 1.4 points.

‘Short-term economic confidence’ (next 12 months) lifted 0.9 points, and ‘medium-term economic confidence’ (next five years) declined 1.9 points.

The ‘time to buy a major household item’ subindex decreased 2.4 points.

image 

"There was a slight easing in ANZ-Roy Morgan Australian Consumer Confidence last week, with the headline index down 0.6 points to 67.2 points," ANZ Economist, Sophia Angala said.

"The series remains near its lowest level since the series began in 1973. Household confidence in financial conditions largely improved, with the ‘future financial conditions’ subindex rising to its highest level since mid-March.

"Household confidence in economic conditions weakened slightly. This likely reflects last week’s Q1 Consumer Price Index (CPI) data, which showed annual growth in trimmed mean (underlying) inflation remaining above the RBA’s 2–3 per cent target band.

"With further price pressures expected from higher fuel and other costs, this will likely keep the RBA cautious around the inflation outlook. We expect the RBA to increase the cash rate by 25 basis points to 4.35 per cent in its decision today."

Download PDF

For media enquiries contact:

Siobhan Jordan

Senior Manager,  Media Relations

+61 403 988 326