Consumer confidence has slumped to its lowest level in more than two years as people anticipate more difficult economic conditions over the next five years.
The ANZ-Roy Morgan Australian Consumer Confidence index fell 3.5 per cent from the previous week, with respondents’ perception of the economy – including the outlook for the next 12 months – dipping 0.6 per cent and sentiment about conditions during the next five years plummeting 7.6 per cent.
The weekly measure of consumer mood, which is based on about 1,000 face-to-face interviews conducted on Saturdays and Sundays, also recorded a 4.6 per cent drop in how people felt about their current financial condition compared with a year ago and a 4.8 per cent slide regarding their finances during the next 12 months.
The overall confidence index retreated to its lowest point since August 2017 and the economic conditions over the next five years sub-index hit depths last recorded in November 2017.
“While households feel okay about their current financial situation, they are clearly quite worried about the outlook, for both their own finances and the economy,” ANZ economist Felicity Emmett said.
“This is a disappointing development and suggests that expectations for tax and interest rate cuts to spur the consumer to lift the economy may be misplaced,” she said.