Australian Consumer Confidence Falls on Weak Household Finances
The ANZ-Roy Morgan Australian consumer confidence fell 3.1 points to 64.1 in the week of May 4 to May 10, ANZ reported Tuesday.The four-week moving average edged down 0.1 points to 65.9 points.Australian consumer confidence fell to near historic lows after the Reserve Bank of Australia (RBA) raised the cash rate to 4.35%, with broad-based declines led by a sharp drop in household finances despite a slight easing in inflation expectations on lower petrol prices, according to ANZ economist Sophia Angala.Household spending data for March indicates that higher fuel prices had not yet reduced consumer spending, but record-low consumer confidence suggests weaker demand ahead, reinforcing expectations that the RBA will keep the cash rate steady at 4.35% in the near term, Angala added.Weekly inflation expectations fell to 6.4% from 6.7%, while the current financial condition indicator for 12 months fell 4.1 points to 58.3. The future financial conditions for the next 12 months decreased to 74 points from 76.8.Short-term economic confidence for the next year fell 1 point to 55.9, while medium-term economic confidence for the next five years decreased to 71.8 points from 76.4.The "time to buy a major household item" subcategory fell 3.4 points to 60.3.