Consumer confidence in Australia declined by 2.0 points last week, reaching 83.5 points, according to the latest ANZ-Roy Morgan survey. The four-week moving average remained steady at 85.1 points.
Weekly inflation expectations held at 5.6 percent, while the four-week moving average for inflation expectations rose slightly by 0.1 percentage point to 5.5 percent.
Measures of household financial conditions showed mixed results. Current financial conditions over the past year fell by 0.4 points, and future financial conditions for the next twelve months dropped more sharply by 3.5 points.
Short-term economic confidence for the coming year decreased by 0.2 points, and medium-term economic confidence over five years was down by 0.6 points.
The subindex measuring whether it is a good time to buy a major household item recorded the largest drop among all indicators, falling by 5.6 points.
ANZ Economist Sophia Angala commented: "ANZ-Roy Morgan Australian Consumer Confidence fell 2.0 points, with declines across all subindices. The ‘time to buy a major household item’ subindex recorded the largest fall, likely driven by the conclusion of Black Friday sales last week, while household confidence in their future finances fell to its lowest level since November 2023."
She added: "The October monthly CPI signalled inflationary pressures are persisting, and this likely supported the recent rise in inflation expectations. On a four-week moving average basis, inflation expectations are now at their highest level since late 2023. Given recent inflation pressures, ANZ Research now expects the RBA Board to keep the cash rate at its current level of 3.60 per cent for an extended period."
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