ScoMo crashes consumer confidence

I don’t usually report the weekly given the volatility but such a large break is significant:

Consumer sentiment plunges

 ANZ-Roy Morgan Australian Consumer Confidence plunged 6% last week, closing just below its long term average and at its lowest level for more than a year. All components of the survey fell sharply.  Households’ perceptions of current financial conditions fell by 7.1% last week, while sentiment regarding the future financial situation fell by 3.4%.

 Sentiment towards current economic conditions fell by 5.4%, while that towards future economic conditions fell by 6.5%.

 The ‘time to buy a household item’ sub-index fell by 7.8%. The index is at its lowest level for three years. Four-week moving average inflation expectations edged higher at 4.5%. ANZ’s Head of Australian Economics, David Plank, commented:

“Confidence plunged by 6% last week, bringing the index to its lowest level since September 2017. There was no glimmer of better news in the subindices, with all confidence measures down sharply. Loss of Liberal stronghold Wentworth may have highlighted political uncertainty in the public mind. Higher petrol prices may also be impacting sentiment. Certainly there was no cheer from the favourable labour market numbers released last week. There are no local data of note released this week, which will provide clear air for even more focus than usual on political developments – as if an excuse was needed.”

Back to the Abbott days. Full report.