This weekly ANZ-Roy Morgan Consumer Confidence Rating is based on 1,035 face-to-face interviews conducted Australia-wide with men and women aged 14 and over last weekend July 4/5, 2015.
ANZ-Roy Morgan Consumer Confidence fell 4.6% to 111.0 this week, reversing most of the gains made in the previous two months in response to the Commonwealth Budget. News flow around the intensifying Greek debt crisis has clearly had an impact on consumer confidence. Losses on global share markets might have also contributed. These concerns were reflected in all sub-indices of ANZ-Roy Morgan Consumer Confidence falling this week.
News around the Greek economy appear to have spurred concerns about its impact on the global economy and hence Australia. This was reflected in consumers’ view towards the economy, with confidence in the economic outlook over the next year (-8.2%) and next five years (-2.9%) both falling.
Households’ views on ‘time to buy a major household item’ also fell significantly (-8.1%), reversing the gains made in the previous five weeks.
ANZ Chief Economist Warren Hogan commented:
“ANZ-Roy Morgan Consumer Confidence plummeted this week as global economic and financial turmoil dominated the news flow and caused weakness in equity markets. Australians appear acutely aware of the threats posed to economic stability by both the Greek crisis and China's equity market collapse. An almost 5% decline in confidence in a single week is unusual and should be treated seriously, especially as it reverses a rising trend that has been in place for the last two months.
"While most of the decline in confidence in the past week is likely the result of international factors, it nevertheless reveals the underlying fragility in Australian household perceptions of the economic environment. Ongoing weakness in wage growth and recent soft retail sales data highlight the cautious approach to financial matters on the part of most Australians at present.
"The strong point for the Australian economy continues to be housing. The housing sector has shown strength for some time, however it appears solid house price growth in Sydney and Melbourne have not boosted confidence as much as pre-GFC. The inability of confidence to gain momentum in the past year suggests that the constant speculation about a housing bubble may actually be working to unnerve consumers. This suggests that evidence of an orderly softening in Sydney and Melbourne property markets may help to support consumer confidence as persistent bubble speculation subsides.”
Click to view the PDF of the ANZ-Roy Morgan Weekly Consumer Confidence Release.
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