Consumer confidence last week declined to its its lowest level since April 2020, as the Reserve Bank increased interest rates for a fourth month in a row.
The 4.5 per cent decline in the ANZ-Roy Morgan Australian Consumer Confidence Rating more than offset the index’s gains the three previous weeks.
The long-running report is based on 1528 interviews conducted online and over the telephone last week.
ANZ senior economist Adelaide Timbrell told Ausbiz TV while sentiment was low, consumers were still spending, which likely meant Australia would be able to avoid a recession.
“While do expect to spent to see a pullback in spending at some point, we haven’t see any more pullback yet,” she said.
“Overall we are seeing really resilient household spending, really resilient savings behaviour, particularly among those who have the most mortgage debt.”
Another consumer confidence report, the monthly Westpac Consumer Confidence Index, will be released later on Tuesday.
NAB’s business survey will also be released, for a trifecta of information on how consumers and businesses are feeling.
