Consumer confidence in Australia experienced a slight decline last week, with the index dropping 0.6 points to 86.4. The four-week moving average also saw a decrease, falling by 0.3 points to 87.6.
Weekly inflation expectations rose by 0.3 percentage points, reaching 5%, while the four-week moving average remained stable at 4.7%. Current financial conditions over the past year saw a minor dip of 0.1 points, whereas future financial conditions for the next twelve months decreased by 3.2 points.
In contrast, short-term economic confidence for the coming year increased by 1.2 points, though medium-term economic confidence over five years slightly declined by 1 point. The subindex measuring whether it is a good time to buy major household items dropped marginally by 0.1 points.
ANZ Economist Sophia Angala commented on these developments: "ANZ-Roy Morgan Australian Consumer Confidence fell 0.6 points last week to 86.4 points, largely driven by lower confidence in the 12-month financial outlook." She noted that economic confidence showed a small increase and highlighted changes in inflation expectations: "Weekly inflation expectations lifted to 5% last week with inflation data last week pointing to a stalling in disinflation."
Angala further observed shifts within housing cohorts: "Confidence across the housing cohorts has converged. Confidence of outright homeowners has fallen, while mortgage holder confidence has risen likely due to the fall in interest rates in February and May." Mortgage holders' confidence is reportedly at its highest level in three years.
The next ANZ-Roy Morgan Australian Consumer Confidence report will be available on Wednesday, June 11th due to adjustments for the King’s Birthday public holiday.