The weekly ANZ-Roy Morgan Consumer Confidence Index has been released, with confidence rebounding 1.6%; albeit remains at recessionary levels:
According to ANZ Head of Australian Economics, David Plank:
There are 886 words left in this subscriber-only article.
Get your first month for $1
Consumer confidence increased 1.6% last week after a 7.6% decline the week before. News about the strength of the labour market may have boosted sentiment, but it remains deeply pessimistic. Household inflation expectations jumped 0.3ppt to 5.9% as average petrol prices increased over the week. The ‘current’ and ‘future economic conditions’ subindices dropped for a third consecutive week, as central banks across the world, including the RBA, became increasingly hawkish about bringing inflation under control, causing uncertainty about economic growth.
The next chart shows that inflation expectations have almost rebounded back to April’s peak before the federal government halved the fuel excise:
The next chart plots the consumer confidence index over the very log term, with confidence tracking around the lowest level since the early-1990s recession:
The Reserve Bank has never commenced a rate-tightening cycle with such low consumer confidence. This spells bad news for the economy, given household consumption is the economy’s biggest driver.
- Joe Aston rips teal independents’ pork barreling hypocrisy - June 30, 2022
- CBA: Stronger economy halves federal budget deficit - June 30, 2022
- ABS job vacancies soar toward 500k - June 30, 2022