The ANZ-Roy Morgan Consumer Confidence was down 3.2 points to 83.6 percent for the week starting January 31st. This was the largest weekly drop in consumer confidence in the last six months. Due to strained current financial conditions and future economic uncertainty, consumers are spending less.
“Consumer confidence experienced its biggest weekly fall since early August 2022. Confidence about current and future finances fell sharply, perhaps sparked by concerns about the extent of cash rate rises after the Q4 inflation print. Household inflation expectations drifted up but are still lower than expectations during the final three months of 2022. Average confidence among homeowners paying off their mortgages fell less than other housing status cohorts, though still ended the week with lower confidence than renters and outright homeowners,” said Adelaide Timbrell, ANZ Senior Economist.
Around 47 percent of Australian families said they felt financially worse off than at the same time last year, and 34 percent expect to be even worse off next year.
