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Surging inflation expectations has seen the weekly ANZ Roy Morgan consumer confidence index plunge further into pessimistic territory, down 4.8% last week to its lowest level since October 2020 (during Victoria’s initial 14-week lockdown):
Key points are as follows:
- Confidence fell across all states and territories.
- ‘Weekly inflation expectations’ rose 0.4ppt to 6.0% as petrol prices continued to surge. Its four-week moving average rose 0.2ppt to 5.5%.
- ‘Current financial conditions’ decreased by 5.4% and ‘future financial conditions’ fell 4.6%. Both indices were at their lowest levels since July and April 2020 respectively.
- ‘Current economic conditions’ declined for a fifth straight week. Dropping by 8.5% it fell to its lowest since October 2020. ‘Future economic conditions’ bucked the overall trend and increased by 1.1%.
- ‘Time to buy a major household item’ dropped by 6.9%.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.