The ANZ-Roy Morgan Consumer Confidence index plunged to its lowest historical record in the past week, declining 9.8%, its lowest level since the almost 50-year history of the survey, according to ANZ head of Australian Economics, David Plank.
However, there were some glimmers of hope, he said, with the outlook for future finances up marginally and a rise in inflation expectations. “There was a sharp uptick in the weekly reading of inflation expectations, which rose to 4.3%, but we aren’t getting carried away. Current economic conditions fell more than 9% and are down close to 50% over two weeks, the lowest ever level and most other aspects of the survey are exceptionally weak.”
Household consumption intentions continued to contract, falling the most over the past week, dropping 23.8%.
“The announcement of the largest fiscal package yet may stabilise confidence, but much will depend on the how the pandemic evolves,” Plank said.