Consumer confidence falls on rate cut

This afternoon, Roy Morgan released its first consumer confidence survey since last week’s rate cut and it shows a small deterioration. Obviously much of the gain transpired in advance. Will be interesting to watch as Europe descends:

Consumer Confidence was virtually unchanged at 116.4pts, (down 0.4pts in a week) according to the Roy Morgan Consumer Confidence Rating conducted last weekend (November 5/6, 2011). Consumer Confidence is now 9.6pts lower than a year ago, November 6/7, 2010 (126.0). This survey was interviewed after the RBA reduced interest rates by 0.25% to 4.5%, the RBA’s first cut in interest rates in more than 2 years.

David Llewellyn-Smith
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Comments

  1. Can you post reactions in consumer confidence to previous cuts (historically) it would be good to compare?

  2. There must be many factors other than interest rates that feed into consumer confidence.

    Roy Morgan could equally well have declared..”Interest rate cuts help avert deep tumble is confidence…etc etc….”

  3. Didn’t the recent Westpac report say confidence was up.

    What is the correlation like between the RM and Westpac measures?