The RBA’s surprise 0.25% rate hike last week has pushed consumer confidence to its eighth weakest result since March 2020.
The Consumer Confidence Index fell by 2.1 points and has sat below 80 for a 10th straight week, the longest stretch since the 1990-91 recession:
The key drivers of this week’s result was as follows:
- Consumer confidence decreased by 2.1pts. Among the mainland states, confidence rose in NSW and Queensland, while it fell in Victoria, SA, and WA.
- ‘Weekly inflation expectations’ rose 0.3ppt to 5.3%, while its four-week moving average was unchanged at 5.3%.
- ‘Current financial conditions’ dropped 4.0pts to its second lowest level on record since 2001. ‘Future financial conditions’ gained 0.3pts.
- ‘Current economic conditions’ fell 2.9pts, while ‘future economic conditions’ were down 1.6pts.
- ‘Time to buy a major household item’ declined 2.7pts and remained below 70 for a thirteenth consecutive week.
Commenting on the result, ANZ Senior Economist, Adelaide Timbrell, noted that this is “the longest stretch below 80 since the 1990-91 recession when the survey was conducted monthly, and it was below 80 for five consecutive months”.
“Confidence declined among all housing cohorts and fell the most for those paying off their homes (-3.2pts). Current economic and financial conditions were most affected, with both indices falling below 70”.
