The ANZ-Roy Morgan weekly consumer confidence survey is our showing a drop of 1.6%.
This takes back half of the recent 3-week bounce and confirmed once again both the enduring uncertainty at a consumer and household level and also that recent hopes for a positive Christmas may be dashed.
The ANZ said in a note accompanying the release that, “Despite the lack of momentum in recent months, confidence remains around healthy, long-run average levels, and is consistent with moderate growth in household consumption.”
Moderate is the new black, it seems, when it comes to spending growth but the ANZ highlights that the survey “continues to point to a modest pick-up in household spending”.
Highlighting the headwinds Australian consumers – and by extension Australia’s economy – face, ANZ chief Economist Warren Hogan said “the loss of momentum this year may result from sustained weakness in wages growth which may be leaving households in doubt about their capacity to absorb financial shocks and increasing their sensitivity to negative economic news.”
Indeed, there is a painful conversation not being had about Australian job prospects and wage rises into the future. It appears however Australian consumers are already waking up to the new reality.