Consumer confidence in Australia dropped by 3.4 points last week, reaching 86 points, according to the latest ANZ-Roy Morgan survey. The four-week moving average also decreased slightly by 0.2 point to 88.8.
Weekly inflation expectations increased marginally by 0.1 point to 5.0 percent, with the four-week moving average remaining unchanged at 5.0 percent.
Several indicators showed declines: current financial conditions over the past year fell by 3.2 points, while future financial conditions for the next 12 months dropped by 2.4 points. Short-term economic confidence, reflecting views on the economy over the next year, declined by 4.4 points and medium-term economic confidence over five years decreased by 3.7 points.
The subindex measuring whether it is a good time to buy a major household item also fell, down by 3.2 points.
"There was a broad-based decline in ANZ-Roy Morgan Australian Consumer Confidence last week, with all subindices moving backwards. This caused confidence to decline to a two-month low," said ANZ Economist Madeline Dunk.
"Household confidence in the economy also fell to its lowest level since June. The time to buy a major household item subindex is at its softest since May, which is likely seasonal, as May is when end-of-financial year sales events started ramping up. Despite last week’s decline, we expect the upward trend in consumer confidence to resume," she said.
"On a four-week moving average basis, confidence is still at its second highest level in more than three years. Household balance sheets look strong and will be supported by rising real household disposable incomes, disinflation and a strong labour market. This should flow through to confidence."