Powered by MOMENTUM MEDIA
subscribe to our newsletter

Weak GDP data hits consumer confidence

Consumer confidence fell sharply last week, with the headline index dropping to its lowest level since May, new research has found.

The ANZ-Roy Morgan consumer confidence index decreased by 4.4 per cent in the week ending 11 December.

The sharpest declines were recorded in views on ‘economic conditions over the next 12 months’ and ‘now is a good time to buy a household item’.

Households’ views towards their future finances fell by 2.1 per cent, while views towards finances compared to a year ago edged down by 0.7 per cent. Both of these sub-indices remain above their long-run averages.

Views of economic conditions over the next 12 months dropped notably by 11.7 per cent, bringing the index to its lowest level since February this year. Meanwhile, household views of the economic outlook in the next five years only fell by 1.7 per cent.

Advertisement
Advertisement

PROMOTED CONTENT


ANZ senior economist Jo Masters said that the sharp fall in consumer confidence is “not surprising” following a “shockingly weak” Q3 GDP result.

“We expect the weakness in Q3 economic growth to be temporary,” Ms Masters said. “The recent pickup in retail sales, combined with still-elevated confidence around future finances, suggests consumer spending will likely improve in Q4. Moreover, higher commodity prices should support profits, and non-mining investment in NSW and Victoria is strengthening.”

“Looking forward, the labour market report on Thursday has the potential to impact consumer confidence this week. We are expecting solid employment growth in November, but confidence is vulnerable to a weaker than expected report.”

[Related: GDP result ‘shockingly weak’: ANZ]

Weak GDP data hits consumer confidence
mortgagebusiness

Latest News

The Australian economy saw strong growth in the September quarter, officially bringing the country out of recession. ...

Civil penalty proceedings have been brought against the major bank for overcharging interest on business overdraft accounts. ...

The prudential regulator has taken action against Westpac over breaches of liquidity standards, adding that they show weaknesses in the bank...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: What’s being done to support home building?

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.