Consumer confidence
- Consumer confidence: The ANZ/Roy Morgan consumer confidence rating fell by 2.2 per cent to 113.2 in the week to May 29. But the reading on whether it was a good time to but a major household item rose to 5-month highs (highest since January 10).
What does it all mean & what are the implications?
- When you consider the fact that we are in an election period, the Aussie dollar is softening, winter weather is finally appearing and petrol prices are drifting higher, consumer confidence levels remain OK. While the confidence index fell last week, the drop was from 5-week highs and it hadn’t dropped in a month. The current consumer confidence index level remains above the average recorded since 2014.
- The good news for retailers is that the reading on whether it was a good time to buy a major household item rose to 5-month highs in the latest week. Life clearly isn’t that bad.
What do the figures show?
Consumer confidence
- The ANZ/Roy Morgan consumer confidence rating fell by 2.2 per cent to 113.2 in the week to May 29. Confidence is down 0.3 per cent over the year, but above the average of 112.1 since 2014. According to preliminary data three of the five components of the index fell in the latest week:
- The estimate of family finances compared with a year ago was up from +5 to +6;
- The estimate of family finances over the next year was down from +29 to +23;
- Economic conditions over the next 12 months was down from +3 to -4;
- Economic conditions over the next 5 years was down from +7 to +5;
- The measure of whether it was a good time to buy a major household item was up from +34 points to +37 points.
What is the importance of the economic data?
The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank.