Consumer confidence has fallen again in the week ending July 3, slipping 0.9 per cent following a 1.7 per cent decline the previous week, according to the latest ANZ Roy Morgan Consumer Confidence Index.
Uncertainty about the Federal election outcome and concerns about the global outlook are likely to have driven the downward trend.
Consumers’ views about the state of their finances headed south. Views about personal finances slipped 1.6 per cent and views about the state of their future finances fell 5.1 per cent.
Views about economic outlook picked up. The 12 month economic outlook bounced 4.7 per cent and views about the state of the economy over the next five years rose 1.7 per cent.
While consumers’ views on the economy have been on an upward trajectory since the start of the year, they are still below the long run average.
The head of ANZ Economics Felicity Emmett said confidence had slipped over the last two weeks after reaching a two and a half year high.
“While the recent turmoil in financial markets has likely played a part, we believe that a larger contributing factor in this week’s fall is likely to have been uncertainty related to the Federal election,’’ Ms Emmett said.
She said much will now depend on developments in Canberra in the weeks ahead.
“Over the coming weeks, confidence could be affected if the government fails to secure a majority and a minority government proves difficult to form. This uncertainty around the political outlook will likely remain a key influence on household confidence in the near term,” she said.