Possible impact from election.

Consumer confidence has fallen for a third straight week amid uncertainty about the election result and the outlook for the global economy. The ANZ-Roy Morgan Consumer Confidence Index fell 0.5% in the week ending July 10 to 115.2, which is below the four-week average of 116.7.

ANZ head of Australian economics Felicity Emmett said confidence had fallen almost 3%, which partly reversed lifts in May and early June, when confidence reached a two and a half year high.

consumer confidence

“Confidence has been buffeted by uncertainty surrounding the domestic political outlook, as well as concerns over global growth. The downgrade of Australia’s credit rating outlook by Standard and Poor’s is also likely to have weighed on consumer sentiment,” she said in a statement.

Households were 4.1% less confident about the economy over the next 12 months and 2.7% more downbeat about the economic outlook over the next five years.

However, consumers’ views of their current finances compared to one year ago rose by 0.3% and their views of their finances over the next 12 months were up sharply, by 4.3%.

“Household sentiment remains well above its long-term average, although how sustainable this is remains to be seen. With that said, the fact that a hung parliament looks to have been narrowly avoided is encouraging,” Emmett said.