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Australian Consumer Confidence Falls as Middle East Tensions Weigh on Sentiment

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The ANZ-Roy Morgan Australian consumer confidence edged down 0.1 points to 70.7 in the week of June 8 to June 14, ANZ reported Tuesday.

The four-week moving average rose 1.1 points to 69.1 points.

Household sentiment improved on personal finances and major purchases, even as confidence in broader economic conditions slipped amid escalating Middle East tensions, according to ANZ economist Sophia Angala.

The Reserve Bank of Australia is expected to hold the cash rate at 4.35% at Tuesday's meeting as rising unemployment, subdued household spending, a soft housing market, and historically low confidence reinforce the case for policy stability, Angala added.

Weekly inflation expectations fell to 6% from 6.1%, while the current financial condition indicator for 12 months increased 2.6 points to 62.7. The future financial conditions for the next 12 months increased to 78.6 points from 78.4.

Short-term economic confidence for the next year fell 1.3 points to 60, while medium-term economic confidence for the next five years decreased to 77.6 points from 80.4.

The "time to buy a major household item" subcategory rose 0.9 points to 74.7.

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