Consumer confidence in Australia experienced a decline, falling 1.8 points to 86.7 last week, according to the latest figures. Over the same period, the four-week moving average showed a slight decline of 0.1 points, settling at 86.8 points.
Weekly inflation expectations showed a marginal increase of 0.1 percentage points, reaching 4.7%. The four-week moving average for inflation fell by 0.1 points to 4.9%. There were varied movements in financial conditions indices, with 'current financial conditions' decreasing by 2.7 points and 'future financial conditions' rising by 0.8 points.
In terms of economic confidence, 'short-term economic confidence' declined by 2.0 points, while 'medium-term economic confidence' saw a larger decrease of 3.8 points. The subindex tracking the 'time to buy a major household item' also saw a decline, going down by 0.9 points.
"ANZ-Roy Morgan Australian Consumer Confidence declined 1.8 points last week to 86.7 points, a pullback from the 32-month high the week prior," ANZ Economist Sophia Angala commented.
Ms. Angala added, "Most subindices fell in the week, but only one is below its second half 2024 average: households’ confidence in their current financial conditions is at its lowest level since late September. Household confidence on the economic outlook and their finances over the coming year are still well above the second half 2024 average. The 'time to buy a major household item' subindex lowered 0.9 points last week to 81.8 points but the series is up 12.1 points since the introduction of Stage 3 tax cuts in July.
"The headline Consumer Confidence series has lifted 7.7 points over the same period, and alongside stronger than expected fourth quarter retail volume data last week, this suggests the recovery of the consumer is in motion."
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