RBA rate hikes hammer consumer confidence

The weekly ANZ-Roy Morgan consumer confidence index has been released, with confidence sliding 0.5% following the Reserve Bank of Australia’s (RBA) fourth consecutive 0.5% rate hike:

The key movements in the sub-indices are summarised below:

• Consumer confidence decreased by 0.5% last week, a relatively small decline given the RBA increased the cash rate by 50bps. Across the major states confidence increased in Victoria and SA, while it dropped in NSW, Queensland and WA.
• ‘Weekly inflation expectations’ dropped 0.1ppt to 5.3%, and its four-week moving average was also down 0.1ppt to 5.4%.
• The confidence subindices results were mixed. ‘Current financial conditions’ rose 1.6%, its third straight weekly increase. ‘Future financial conditions’ was practically unchanged with a 0.1% rise to just above the neutral level.
• ‘Current’ and ‘future economic conditions’ decreased by 2.5% and 2.0% respectively, after four straight weeks of gains.
• ‘Time to buy a major household item’ rose 0.5% after a 2.4% increase the week before.