The ANZ-Roy Morgan Research consumer confidence index fell marginally in the week ended 23 August, falling by 0.2 points to 113.0 to be tracking in line with the long-run average (see next chart).
The small fall in confidence was driven by dour views on economic conditions amid share market volatility, with the sub index measuring people’s views on the economic outlook for the next year down 5.4% from a year ago.
ANZ chief economist, Warren Hogan, said the latest reading was taken before the most recent bout of market volatility, although concerns over China’s slowdown were still weighing on confidence.
“Confidence and consumer spending appear to be vulnerable to further bad news”…
“Australia’s equity markets have fallen by more than 15 per cent since the peak recorded in March, with more than half that decline happening in August.”
The below chart plots the most recent Westpac-Melbourne Institute Consumer Sentiment index against the latest ANZ-RM Consumer Confidence index:
Both indices remain subdued.
