Australian consumer confidence slipped back again last week

Australian consumer confidence fell 1.2% to 114.5 last week according to the latest release of the ANZ-Roy Morgan weekly consumer confidence index. That’s the second week in a row that confidence has slipped back.

The ANZ reports that consumer views towards future finances fell 4.7%, more than offsetting the increase in the previous week. Views towards finances, compared to a year ago, fell 0.2%, further adding to the overall decline in confidence.

Naturally taking the pulse of consumer confidence weekly can sometimes make it prone to more noise than signal, so trying to glean reasons for weekly ups and downs in mood will naturally attract as much supposition as reality.

But, ANZ co-head of Australian economics Cherelle Murphy said that, “It is possible that the recent terrorist events are weighing on confidence. A recent Newspoll showed that around three quarters of Australians believe a terrorist attack is at least ‘likely’ in Australia.”

The good news is that even against this backdrop Murphy says that confidence levels “remain elevated” and are “above the long-run average.”

“This is likely a reflection of the current momentum in the jobs market, where opportunities in the services sectors appear to be rising,” she added.

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