Australian Consumer Confidence Hits 12th Lowest Level Since 1973
Australia and New Zealand Banking Group reports consumer confidence remains at historic lows as economists predict further interest rate hikes in November.
The Australia and New Zealand Banking Group reports that Australian consumer confidence remains at historically low levels, with the ANZ-Roy Morgan Consumer Confidence index recording 67.7. This figure represents the twelfth-lowest result since the series began in 1973.
While buying intentions for major household items rose slightly to 17 per cent, overall sentiment is suppressed by a weakening labor market and rising unemployment. Data shows that 56 per cent of families report being worse off than a year ago, and nearly half of the population expects bad economic times over the next 12 months.
This stagnation follows a period of volatility after the Reserve Bank of Australia lifted the cash rate to 4.60 per cent. Due to persistent inflation risks, ANZ economists anticipate the central bank will raise the cash rate by another 25 basis points in November to 4.85 per cent, which would be the highest level since 2008. Analysts expect household spending to remain subdued in the near term.
