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Australian Consumer Confidence Falls as Rate Hike Expectations Rise

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The ANZ-Roy Morgan Australian consumer confidence fell 3 points to 71.9 in the week of Aug. 31 to Sept. 6, ANZ reported Tuesday.

The four-week moving average fell 0.8 points to 75.2, per the report.

Australian consumer confidence fell to its lowest level since late July last week, as growing expectations of another Reserve Bank of Australia (RBA) rate hike weighed on household sentiment, according to ANZ economist Sophia Angala.

Australia's economy is showing signs of losing momentum, while rising inflation expectations are strengthening the case for the RBA to raise interest rates by another 25 basis points in November, Angala added.

Weekly inflation expectation rose to 6.3% from 6.1%, while the current financial condition indicator for 12 months fell 7.5 points to 60.5. The future financial conditions for the next 12 months declined to 81 points from 83.4.

Short-term economic confidence for the next year fell 1.5 points to 65.7, while medium-term economic confidence for the next five years decreased to 77.4 points from 78.9.

The "time to buy a major household item" subcategory fell 1.9 points to 75.1.

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