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ANZ-Roy Morgan Australian Consumer Confidence - Westpac Interest Rate Rise Chips Away Confidence
October 20 2015
- Finding No.
Consumer Confidence Press Release
This weekly ANZ-Roy Morgan Consumer Confidence Rating is based on 1,029 face-to-face interviews conducted Australia-wide with men and women aged 14 and over last weekend October 17/18, 2015.
ANZ-Roy Morgan Australian Consumer Confidence fell 2.0% to 113.3 this week, following a bounce of 5.1% in the previous week. Westpac’s decision to increase its mortgage rates, combined with news flow around slowing momentum in the property market, is likely to have contributed to the fall in confidence.
ANZ Co-Head of Australian Economics Felicity Emmett commented:
- The decline in confidence was broad-based. Of note, consumers’ views towards whether now is a ‘good time to buy a major household item’ fell 3.1%. This sub-index is 7.9% below its long run average, and is furthest from the long run average in comparison to all other sub-indices.
- Views on ‘economic conditions in the next five years’ fell 1.2%, but appears to cementing an upward trend supported by confidence in the Turnbull government.
“The fall in ANZ-Roy Morgan Australian Consumer Confidence last week was likely driven by deteriorating sentiment about the outlook for the housing market. Higher mortgage rates and falling auction clearance rates are pointing to weaker growth in house prices. The latest ANZ-Property Council Survey revealed a decline in property sector confidence with falls expected in residential prices and construction. A softer housing market is likely to weigh on consumer confidence, economic growth and employment.
"Housing has been a key pillar of growth this year, and without that support in 2016, we expect the economy will need further stimulus in the form of another 50bps of rate cuts from the RBA. While the focus is turning to the November RBA board meeting, we continue to expect the Bank to wait until February to change policy settings.”
Click to view the PDF of the ANZ-Roy Morgan Weekly Consumer Confidence Release.
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The latest Roy Morgan Consumer Confidence Monthly Report is available on the Roy Morgan Online Store. It provides demographic breakdowns for Age, Sex, State, Region (Capital Cities/ Country), Generations, Lifecycle, Socio-Economic Scale, Work Status, Occupation, Home Ownership, Voting Intention, Roy Morgan Value Segments and more.
You can also view our monitor of Monthly Australian Unemployment & Under-employment Estimates.