Australia weekly consumer confidence edges lower on subdued economic outlook
Consumer confidence in Australia edged lower during the week ended October 10, largely driven by a fall in the consumers’ views of the 12 month economic outlook. Even so, consumers remain relatively upbeat about the longer-term economic outlook, with the 5-year-ahead index rising 0.7 percent.
Consumer confidence edged down 0.3 percent in the week ending 10 October following a 2.2 percent fall last week. The report was mixed, with indicators of current conditions fell slightly while forward-looking indicators posted gains.
Consumers’ views towards their current finances fell 0.6 percent, while views towards future finances rose 0.7 percent. Both of these sub-indices remain well above their long run averages. Further, following two months of volatility, consumer confidence was relatively flat this week, with the headline index falling 0.3 percent.
The dip in consumer confidence was largely driven by a 1.5 percent decrease in consumers’ views of the 12 month economic outlook. Household views on whether ‘now is a good time to buy a household item’ slipped 0.8 percent.
“The fall in consumers’ views toward current economic conditions is a little disappointing given the solid run of domestic data last week. That said, consumers remain positive about the longer term outlook,” said Jo Masters, Senior Economist, ANZ.