The ANZ-Roy Morgan Research (RMR) consumer confidence index has failed to recover from last week’s shellacking, recovering by only 0.1 points to 109.8 in the week ended 12 April to be tracking well below the long-run average of 113. It remains close to the lowest reading for 8 months (see next chart).
According to ANZ chief economist, Warren Hogan, consumer confidence is in the “danger zone”:
“Given the apparent sensitivity of the Australian consumer to budget issues, it will be important to monitor consumer confidence closely over the weeks ahead. Our main concern for the economy would be another strongly adverse response to the budget as seen last year. This not only risks undermining retail spending but also business confidence more widely,” Hogan said, as he described current confidence level as being in the “danger zone.”
The below chart plots the most recent Westpac-Melbourne Institute Consumer Sentiment index against the latest ANZ-RM Consumer Confidence index:
Westpac-Melbourne Institute will release their survey for April tomorrow.
