The ANZ-Roy Morgan Research consumer confidence index retraced by 1.4points in the week ended 22 November after hitting a 22 month high two week’s back (see next chart).
The slight fall in the index was driven by reduced confidence towards future finances, which fell 4.7% and is down 0.2% on a year ago.
ANZ co-head of Australian economics, Cherelle Murphy, blamed the fall in confidence on the recent terrorist attacks in France:
“It is possible that the recent terrorist events are weighing on confidence. A recent Newspoll showed that around three quarters of Australians believe a terrorist attack is at least ‘likely’ in Australia.”
More likely it is a retracement back to reality after the sugar hit from Malcolm Turnbull becoming Prime Minister.
Regardless, the below chart plotting the most recent Westpac-Melbourne Institute Consumer Sentiment index against the latest ANZ-RM Consumer Confidence index confirms this view:
Both are at reasonable levels.