The ANZ-Roy Morgan consumer confidence index registered its fourth consecutive fall in the week ended 10 April 2016, declining another 1.4 points to 112.0, and is now tracking just below long-run average of 112.7 (see next chart).
The overall fall in consumer confidence was driven by a 5.5% plunge in respondents’ views toward their personal finances, along with a 2% fall in perceptions around the short-term economic outlook.
Commenting on the result, head of Australian economics at the ANZ, Felicity Emmett, believes that confidence is likely to fall further in the weeks ahead:
“Confidence is likely being weighed down by the discussion around tax and other policy reforms which are in the spotlight in the lead-up to the Commonwealth budget in May”…
“This uncertainty is likely to intensify over the coming weeks.”
The below chart plots the most recent Westpac-Melbourne Institute Consumer Sentiment index against the latest ANZ-RM Consumer Confidence index, with both indices converging on mildly pessimistic readings:
Thus ends the Turnbull confidence ‘sugar hit’.
