Consumer confidence at 8-month low

Advertisement

By Leith van Onselen

The ANZ-Roy Morgan Research (RMR) consumer confidence index has slumped to an 8-month low, falling by 1.0 points to 108.8 in the week ended 19 April to be tracking well below the long-run average of 113 (see next chart).

ScreenHunter_7120 Apr. 21 09.55

The overall slump was driven by a deterioration in perceptions about the economic outlook over the next year and next five years, which both fell for a third consecutive week.

However, households’ expectations of their finances next year rose by 2%, which ANZ claims is the sub-index most closely correlated with auction clearance rates and, therefore, may be reflective of the renewed strength in housing markets.

Advertisement

The below chart plots the most recent Westpac-Melbourne Institute Consumer Sentiment index against the latest ANZ-RM Consumer Confidence index:

ScreenHunter_7121 Apr. 21 09.57

As you can see, both remain well as truly depressed.

Advertisement

[email protected]

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.