Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Consumer confidence drops below long-run average

A recent report has revealed a drop in consumer confidence this week, slumping below its long-run average after a bounce back in the previous week.

The ANZ-Roy Morgan Australian Consumer Confidence report found consumer confidence has not maintained its buoyancy of previous weeks, dropping by 3.5 percentage points in the week ending 24 April.

The report showed that consumer confidence sat at 111.7, falling below its long-run monthly average of 112.7 since 1990.

This decline in sentiment most likely came off the back of Prime Minister Malcolm Turnbull’s confirmation that he would seek a double dissolution election in July.

The report also attributed the fall in confidence to consumers’ views towards the economic outlook, with both subindices on future economic conditions declining by 5 per cent.

Advertisement
Advertisement

Consumers’ views towards their personal finances also took a hit, falling by 3.3 percentage points last week while views regarding ‘whether now is a good time to buy a major household item’ dropped by 4.6 percentage points.

“It is disappointing to see consumer confidence fail to hold on to the previous week’s gain,” ANZ head of Australian economics Felicity Emmett said.

“This highlights how fragile consumer confidence is, particularly around the economic outlook.”

However, despite these results, Ms Emmett emphasised that any impact of budget-related news on consumer confidence “may be temporary”.

“In the coming week, budget-related news is likely to dominate,” she said.

“In recent years, the budget has had the most notable impact on consumers’ views towards the economy.

“[But] we don’t expect any significant policy surprises that will hit households’ pockets.”

[Related: The importance of consumer confidence]

Consumer confidence drops below long-run average
mortgagebusiness

Latest News

Home loan applications continue to decline, according to the latest Equifax data.  ...

The non-major bank has announced “significant” home loan growth over the financial year 2022, up more than $1 billion. ...

New Zealand’s central bank has committed to another cash hike in the face of surging inflation, tacking on an extra 50 basis points. ...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think the new NSW property tax will help or hinder first home buyers?

Website Notifications

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