Consumer confidence has sunk to another post-pandemic low following the 12th interest rate rise in 13 months.
Morale has been low for several months in response to cost of living pressures and interest rate hikes and has now fallen to its lowest level since the COVID-19 lockdowns sent confidence levels plummeting in April 2020.
The ANZ and Roy Morgan’s weekly index fell 3.1 points over the week, led by solid falls in current and future economic conditions.
The “current economic conditions” indicator fell 3.5 points and “future economic conditions” sunk 3.1 points.
After the “time to buy a major household item” survey question staged a recovery for three weeks in a row, these gains were unwound by a 7.6 point fall.
ANZ senior economist Adelaide Timbrell said confidence about current financial conditions, future financial conditions and the whether it was time to buy a major household item were all close to their lowest levels since March 2020.
“Confidence fell among renters, outright owners and those paying off their homes, though those paying off their homes fell to a record low,” Ms Timbrell said.
The poor result follows another interest rate rise in June and posturing from the Reserve Bank suggesting there is more tightening to come.
The 25 basis point hike in June brought the official cash rate to 4.1 per cent.
(Australian Associated Press)