Australian consumer confidence has taken a hit, falling 3.5 points to 80.5 last week, according to the latest ANZ-Roy Morgan survey. The four-week average also experienced a slight decline, easing 0.3 points to 82.1. This indicates a growing sense of unease among households regarding their financial situations.
ANZ economist Sophia Angala noted a dip in optimism concerning household finances. The future financial conditions subindex has reached its lowest point since late November 2023, suggesting increasing apprehension about the economic outlook. Simultaneously, weekly inflation expectations edged up by 0.1 percentage points, reaching 5.5 per cent.
Angala suggests that the decline in consumer confidence may be attributed to concerns surrounding a potential interest rate hike by the Reserve Bank. This speculation follows the release of strong inflation data last week, fueling anticipation of a tightening monetary policy. The combination of these factors appears to be weighing on consumer sentiment across the country.
