Consumer Confidence fell 0.9pts to 84.6 – down 21pts on same time last year: ANZ-Roy Morgan
ANZ-Roy Morgan Consumer Confidence fell 0.9pts to 84.6 this week and is now a large 21pts below the same week a year ago, October 9/10, 2021 (105.6).
In addition, Consumer Confidence is now 5.9pts below the 2022 weekly average of 90.5.
The fall in Consumer Confidence was patchy this week with three States down (NSW, Victoria and WA) and two States increasing slightly (Queensland and SA). There were also inconsistent results across the index with three indicators down slightly and two slightly improving.
Now 23% of Australians (down 1ppt) say their families are ‘better off’ financially than this time last year compared to 44% (up 2ppts) that say their families are ‘worse off’ financially.
Looking forward, now fewer than a third of Australians, 32% (up 1ppt), expect their family to be ‘better off’ financially this time next year while 30% (down 1ppt), expect to be ‘worse off’.
Only 6% (unchanged) of Australians expect ‘good times’ for the Australian economy over the next twelve months compared to more than a third, 38% (up 2ppts), that expect ‘bad times.’
There has been a slight improvement in terms of sentiment regarding the Australian economy in the longer term with 13% (up 1ppt) of Australians expecting ‘good times’ for the economy over the next five years compared to 18% (down 1ppt) expecting ‘bad times’.
When it comes to buying intentions now 24% (down 1ppt) of Australians, say now is a ‘good time to buy’ major household items while almost twice as many, 45% (up 2ppts), say now is a ‘bad time to buy’.
ANZ head of Australian economics, David Plank, commented: “Consumer confidence dropped by 1.1% last week, despite the smaller than expected 25bp rate hike by the RBA. The decline was bigger than the 0.5% decline following September’s 50bp rate increase. Though it is worth highlighting that consumer confidence has remained in the 84-88 range since mid-August despite higher rates.
“The loss last week was mainly driven by a 3.2% drop in confidence among those paying off a mortgage. For those who own their home, confidence was down by 0.4%, while for those renting, it was up 0.9%. Household inflation expectations dropped to 5.5% as average petrol prices fell slightly over the week.”
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