Low wage growth sends consumer confidence falling

Australian consumer confidence fell 3.8 per cent last week, according to the latest ANZ Roy Morgan Consumer Confidence Index.

The latest figures reverse two weeks of improvement.

Consumers’ views towards current and future economic conditions dipped, slipping 8.1 per cent and 7.2 per cent respectively.

The average of these two measures – households’ confidence in the economic outlook – has fallen to its lowest level in 16 weeks.

And the “time to buy a major household item” index fell by a massive 7.6 per cent last week, down to the lowest level in almost two years.

“The decrease in confidence around the economic outlook may reflect concerns around persistently low wage growth in an environment where house price growth is expected to moderate and household debt remains high,” ANZ’s head of Australian economics David Plank said.

Business First is a peer-to-peer magazine: written by CEOs and other high level executives, with interviews with some of the country’s best leaders.

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