New research has shown that consumer confidence fell sharply in the week ending 23 October, driven by a deterioration in consumers’ views toward future financial and economic conditions.
The ANZ-Roy Morgan Australian Consumer Confidence index dropped by 3.6 per cent last week, largely due to a drop in confidence over their 12-month financial outlook, which fell by 7.1 per cent, its lowest level since September last year.
The survey also found that consumers’ views towards their current finances were relatively stable, dipping only 0.2 per cent during the week, while views towards the current economy fell by 2.7 per cent and views towards economic conditions over the next five years fell by 4.9 per cent.
ANZ head of Australian economics Felicity Emmett commented that the extent of the weakness in consumer confidence last week was “surprising”, with the fall leaving the index at its lowest since May.
“We expect that last week’s labour market report showing ongoing weakness in full-time employment likely weighed on sentiment, while stock market falls over the past couple of weeks could have also dampened consumers’ view of the outlook,” Ms Emmett said.
“Overall, however, the labour market is still improving and this, coupled with ongoing housing market strength, should continue to broadly support confidence,” she concluded.
[Related: Consumer confidence reaches three-year high]