The mood among Australian consumers has darkened again after drifting in a more hopeful direction for a few weeks.
Consumers are also feeling less upbeat about price movements, with ANZ and Roy Morgan’s weekly survey revealing a 0.2 percentage point lift in inflation expectations to 5.3 per cent.
The four-week moving average ticked up a little from 5.2 per cent to 5.3 per cent.
ANZ economist Adelaide Timbrell said inflation expectations improved despite heavier-than-usual retail sales activity and NAB’s survey of businesses revealing softening price pressures.
A 3.7 point fall in the overall confidence gauge was also recorded last week, taking the index to 76.4 points – back below 80 and still well below long-run averages.
“The weakness in confidence was broad-based, with declines across all subindices,” Timbrell said.
Confidence fell the most for those paying off their homes, sinking 7.2 points last week.
Mortgage holders have been enduring sharp increases in their monthly repayments as interest rates rise.
Higher prices have also been eroding household balance sheets for borrowers and other housing types.
– AAP