Consumer confidence drops despite RBA rate cut

by Chris Becker

It’s going to take more than a rate cut and a tax cheque from ScoMo to get confidence back. Via AAP:

Consumer confidence fell over the weekend, an ANZ survey suggests, as people appeared to view the latest cut to the cash rate by the Reserve Bank of Australia as a signal of worsening economic conditions.

The ANZ-Roy Morgan Australian Consumer Confidence index dipped 1.1 per cent from the previous week, with respondents’ perception of the economy – including the outlook for the next 12 months – retreating 3.6 per cent and prospects about conditions in the next five years sliding 1.7 per cent.

But the weekly measure of sentiment, which is based on about 1,000 face-to-face interviews conducted on Saturdays and Sundays, recorded a 3.7 per cent rise in how people felt about their financial condition compared to a year ago and a 1.3 per cent increase regarding their finances over the next 12 months.

Comments

  1. “Saturdays and Sundays, recorded a 3.7 per cent rise in how people felt about their financial condition compared to a year ago and a 1.3 per cent increase regarding their finances over the next 12 months.” – load up on bigger mortgages then.

    Anyway she looks like she’s been touched by Reusa.

    • Australia ANZ Weekly Consumer Confidence Falls 1.1% to 117.6
      By Myungshin Cho
      (Bloomberg) —  Australia & New Zealand Banking Group Ltd. releases report in Sydney for week ended July 7. All data are compared to the week ending June 30.
      Consumer Confidence Index 117.6, -1.1%
      Four Week Moving Average 116.3, +0.6%
      Financial Situation, year ago 113.0, +3.7%
      Financial Situation, year ahead 127.1, +1.3%
      Economy One Year Ahead 103.3, -3.6%
      Economy Five Years Ahead 110.9, -1.7%
      Time, Buy Major Household item 133.8, -4.6%
      2-yr Inflation Expectations 3.9%
      See CHART of Australia’s weekly consumer confidence

    • All those consumers we’re importing don’t consume much. They live ultra cheap and send a lot of money back home to India etc. Pretty sure Treasury’s models don’t get this right. Pretty sure retail is f#cked and by extension so is everything else.

      • Don’t buy much. Avoid tax with cash in hand work. Use and abuse healthcare and education.Fraudulently come here, fraudlently stay here, and continue to be fraudulent agents. Don’t like mingling with the locals. Don’t like hiring locals. Don’t like speaking English when it suits them. Exacting when it comes to providing them with something and less exacting when it comes to doing work or providing a service.

        Why do we have them here again?

    • hence why teh gates will stay open. if they shut them we go straight into recession. well we are but numbers are masking it. the numbers our gov wants to stick to.

  2. Despite, or because?

    There’s gotta be some sort of interest-rate-confidence event horizon where cutting stops signalling that “she’ll be right mate” and starts signalling “sh!t’s fkd”

    Dropping to 5%? Ok, plenty of bullets left.

    Dropping to 1%? Cupboard’s bare.

  3. This should help confidence:

    The Sydney and Melbourne suburbs where up to a third of homes are selling at a loss
    https://www.smh.com.au/business/the-economy/the-sydney-and-melbourne-suburbs-where-up-to-a-third-of-homes-are-selling-at-a-loss-20190708-p5255g.html

    Auction clearance rates remained above 60 per cent in both Sydney and Melbourne but the number of homes being put to bidders is down by more than a third over the past year. The total number of new sale listings is now back where it was during the depths of the global financial crisis.

  4. Jumping jack flash

    Early days yet, peeps. Patience.

    According to the RBA’s own notes, the first cut of a whopping 1/4 of 1% (unimaginably huge, I know) to the *cash rate* (of which only some was passed on by the banks to their debt slaves) was meant to improve everyone’s *confidence* that cuts to the cash rate would improve things, like create fulltime positions, grow wages, and bring back general inflation to be between 2 and 3% – that magical band that means everything is going swimmingly.

    And it surely did. Fearless Phil was just bristling with confidence.

    Its the second cut that will actually do anything tangible. The second cut has only just been made and the RBA is poised to watch the meteoric rise of fulltime positions, wages, and inflation as a result of that second, gigantic 1/4 of 1% to the *cash rate* that, once again, was only partially passed on by the banks to their debt slaves.

    Personally I’m waiting for the RBA’s notes about why the heck they thought it was necessary to cut rates again when it is obvious to everyone that it will do absolutely nothing to wages growth, creation of new fulltime positions and general inflation, without increasing debt of course.

    I mean, if they simply want to increase debt they should just say that.

    Fearless Phil: “Everyone, we’ve cut the rates, so go ahead and borrow as much more as you can possibly manage to repay on your stagnant income, and then spend it. Hopefully, by some magical machinations that nobody can explain, the spending of the debt translates into wages growth, more fulltime positions, and increases general inflation. It hasn’t worked before, and it hasn’t worked anywhere else in the world this was tried, but, confidence is now super high from that first cut, just look at my neck hair tingling, so go do it!”

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