Australian Consumer Confidence Lowest Since August

By James Glynn

SYDNEY--Australian consumer confidence fell sharply last week to its lowest level since August amid widespread speculation that the Reserve Bank of Australian will continue to raise interest rates over coming months to battle stubborn inflation pressures.

Consumer confidence decreased by 3.2 points last week to an index reading of 83.6, according to a survey by the ANZ Bank and pollster Roy Morgan.

Overall, confidence remains at recession-like levels with many homeowners facing a huge shift in mortgage repayments this year at a time of surging living costs.

Fears of a global recession also remain high.

ANZ senior economist Adelaide Timbrell said confidence about current and future finances fell sharply, perhaps sparked by concerns around rising mortgage interest rates after recent fourth-quarter inflation data showed prices at their highest since 1990.

Household inflation expectations drifted up but are still lower than expectations during the final three months of 2022.

Weekly inflation expectations rose 0.3 percentage points to 5.4%.

Sentiment around current financial conditions fell 3.2 points, while future financial conditions dropped 4.7 points, falling below the neutral level of 100 for the first time this year. Current economic conditions decreased 1.7 points, while future economic conditions were down 3.2 points.

Consumers were also more downbeat about buying a major household item, with the measure down 2.9 points.

The weekly ANZ-Roy Morgan Australian Consumer Confidence Rating is based on 1,477 interviews conducted online and over the telephone during the week to Sunday.

Write to James Glynn at [e-mail]

(END) Dow Jones Newswires

02-06-23 1745ET