Consumer confidence dropped 2.6 per cent last week, falling below the neutral level of 100. Confidence was lower in Victoria, Queensland and WA, while it rose in NSW and SA.
‘Weekly inflation expectations’ rose 0.2ppt to 5.3 per cent, its highest since June 2014. Its four-week moving average increased 0.2ppt to 5.1 per cent.
Four of the five subindices registered losses. ‘Current financial conditions’ dropped 0.8 per cent and ‘future financial conditions’ fell 2.5 per cent.
Both ‘current’ and ‘future economic conditions’ declined 5.0 per cent.
‘Time to buy a major household item’ increased slightly by 0.4 per cent.
“Consumer confidence dropped 2.6 per cent last week amid rising COVID cases in WA, floods in Queensland and northern NSW and escalating geopolitical tensions.” ANZ Head of Australian Economics, David Plank said.
“Most of the decline took place during the latter part of the week as daily COVID cases breached 1,000 in WA, massive storms battered the east coast and the invasion of Ukraine began.”
“Confidence fell 1.8 per cent in Victoria, 10.9 per cent in Queensland and 4.9 per cent in WA, while it rose 0.7 per cent in NSW and 3.6 per cent in SA. The fact Queensland and WA fell the most suggests local factors were key.”
“Household inflation expectation surged to a new seven-year high at 5.3 per cent as retail petrol prices continued to climb higher.”
