(Australian Associated Press)
Consumer confidence has fallen following a disappointing jobs report and as the Australian dollar slides.
The ANZ-Roy Morgan Australian Consumer Confidence Index fell 2.3 per cent in the week ending November 20, after edging up 0.3 per cent the previous week.
ANZ senior economist Jo Master said last week’s disappointing jobs data showing that full-time employment had actually fallen in the year to October likely weighed on confidence and households’ views on the economic outlook.
“The Reserve Bank of Australia has highlighted the recent loss of momentum in the labour market which, along with moderating business conditions, does warrant close monitoring. The fall in the Australian dollar last week may also have dented confidence,” she said.
“Stepping back from the recent volatility in the index, consumer confidence remains well above its long-run average. This is consistent with an economy growing around trend, a buoyant housing market, and accommodative monetary conditions.”
The fall was driven primarily by a decline in views on the economic outlook.
Households’ views on economic conditions over the next 12 months slumped 5.6 per cent, and their views of conditions over the next five years plummeted 7.5 per cent.
However, respondents’ views towards their finances now compared to a year ago rose 2.1 per cent in the week after a 0.8 per cent fall the previous week.
But households’ views toward their future finances were flat after falling 1.2 per cent the previous week.