Consumer confidence recently experienced a notable decline, with the index dropping 3.1 points to 83.8. The four-week moving average also saw a minor decrease, settling at 87.1 points.
Weekly inflation expectations rose slightly by 0.1 percentage point, reaching 4.8%, while the four-week moving average stayed constant at 4.6%.
In terms of financial conditions, the 'current financial conditions' index over the past year fell by 2.9 points, and the 'future financial conditions' for the next 12 months dropped by 4.5 points.
Economic confidence has also diminished. The index reflecting short-term economic confidence for the next 12 months fell by 4.9 points. Meanwhile, the 'medium-term economic confidence' index for the next five years saw a decrease of 1.7 points.
The subindex representing the 'time to buy a major household item' experienced a fall of 1.8 points.
Sophia Angala, ANZ Economist, remarked on the situation: "Consumer Confidence dropped 3.1 points last week to 83.8 points, its lowest level since October 2024."
She further explained that "the series has dropped 3.9 points in the last fortnight." Angala attributed the decline to "the impacts of ex-Tropical Cyclone Alfred," affecting Queensland and South Australia's confidence levels, while "global trade uncertainty may be weighing on confidence nationally."
Angala noted a general downturn across all areas last week, as "households continue to feel less confident about the economic outlook, with the 12-month outlook falling 4.9 points to below its second half 2024 average."
Angala also shared that "confidence in the five-year economic outlook fell 1.7 points," and households are also "feeling less confident in their financial conditions over the next year," since it dropped 4.5 points, reaching below the neutral 100-point mark for the first time since December 2024.