Closing below the long-term average.
Consumer confidence fell 2.3% last week, according to the latest Roy Morgan data, driven by weakening economic conditions.
Household purchase intentions also fell by 1.4%, its third consecutive decline. Weekly readings of inflation expectations have also shown signs of slowing down.
ANZ Head of Australian Economics, David Plank said Australian households appear to be troubled by negative global economic developments and the related equity market weakness, with sentiment toward current and future economic conditions down sharply.
“Views about current economic conditions have fallen materially for three weeks in a row, while those for future economic conditions are at their weakest since October/November last year. The relative buoyancy of sentiment about personal financial conditions indicates that the tax cuts and lower interest rates are having a positive impact on households. But this hasn’t been sufficient to offset the global news flow,” he said, adding that the more negative view on the economic outlook is impacting inflation expectations. “The past three weeks have seen weekly readings of less than 4%.”