Finance Finance News Consumers getting a case of the wobbles

Consumers getting a case of the wobbles

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Consumers are becoming more pessimistic with  confidence falling  to its lowest point in five months according to the  ANZ-Roy Morgan survey for the week ending December 14.

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The confidence index was down 0.2 points to 110.2 which is well below the 113.2 long term average but up on the mid year plunge which saw it plunge to 99.3 points.

It is the third consequtive fall in the weekly confidence survey and raises concerns about the health of retailers over Christmas.

ANZ chief economist, Warren Hogan, described the figures as “disappointing” and says consumers are reacting to  weak national accounts figures for September and negative headlines generated by the mid year budget blowout announced on Monday.

The key question now is whether this drop in confidence is sustained and slows consumer spending in the crucial Christmas shopping period,” Mr Hogan said.

This bears close watching in coming weeks and will be important for the momentum of the economy will take into 2015,” he said.

The survey points to moderate consumption levels by households and points to property as the most bouyant industry group.