Australian Consumer Confidence Stuck in Low Gear Amid Inflation Fears
Australian consumer confidence ticked up last week, but remains depressed due to ongoing concerns about inflation and potential Reserve Bank of Australia (RBA) rate hikes.
The ANZ-Roy Morgan consumer confidence index rose 2 points to 73.9 for the period from September 7th to 13th, according to data from Australia and New Zealand Banking Group (ANZ). However, the four-week moving average slipped 0.6 points to 74.6, indicating that overall confidence remains sluggish.
According to ANZ economist Sophia Angala, worries about household finances, inflation, higher interest rates, and global uncertainty are still dominating consumer sentiment. The most telling detail was the split under the hood: confidence improved for renters and outright homeowners, but fell for mortgage holders who are most exposed to another RBA move.
The weekly inflation expectations eased to 5.9% from 6.3%, and views of personal finances a year from now improved. Additionally, the 'time to buy a major household item' sub-index edged up to 75.5. However, the overall level remains well below what would be considered normal.