Australian consumer confidence fell again last week, during a volatile period on financial markets.
The ANZ-Roy Morgan weekly consumer confidence index fell 2.2%, with the weakness broad-based as attitudes towards current and future finances both declined 1.8%.
Household views on whether it’s “a good time to buy a household item” fell 4.6%.
The long-term chart is below. As you can see, the index appears to have pulled back after an initial boost from the RBA’s interest rate cut in August.
Felicity Emmett, ANZ’s head of Australian economics, said: “Last week’s sell-off in financial markets – which saw the ASX index suffer heavy losses early in the week – was likely the main driver of the decline in confidence.
“Equity markets have now rebounded from last week’s lows. As such, we think consumers will likely turn their focus back to domestic fundamentals. The strength in the housing market, low interest rates, and an improving labour market should all continue to support confidence in the near term.”