Consumer confidence continues to recede

Despite recent rate cut.

Confidence was down just a notch last week, falling 0.3% along with the consumer intentions on buying a major household item, which also fell 1.2 per cent.

According to ANZ Head of Australian Economics, David Plank, weak Q1 GDP and the soft retail figure for April have seen consumer confidence move lower over the past week, despite the Reserve Bank rate cut.

“Looking back to the rate cuts in 2015 and 2016, there was no tendency for confidence to rise immediately following the move lower in rates. So it’s not particularly surprising that there has been no immediate boost from the rate cut.

“Inflation expectations readings below 4 per cent seem to have become the norm in the past couple of month, which is unique in the history of this survey and something the RBA will be taking note of,” he said.

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