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Australian consumer confidence has dropped to its lowest level in three years, with such a sustained dip not being seen since the 1990s recession. According to the ANZ-Roy Morgan Consumer
Confidence index, consumer confidence fell 3.1 percentage points to 72.7, way below the monthly average, since 1990, of 111.4. This is the lowest this has dipped since April 2020, during the
first major lockdown. “Confidence has been at extremely weak levels for around 15 weeks but has fallen 7.2pts further in the last six weeks,” said ANZ senior economist Adelaide Timbrell.
“Confidence about economic conditions, both current and future, fell most sharply last week following the latest RBA cash rate increase to 4.1 per cent.” The Westpac-Melbourne Institute
consumer sentiment survey likewise showed consumer sentiment sits some 22 per cent below its long-run average. “For the last year the Index has held around levels we have not seen on a
sustained basis since the deep recession of the late 1980s/early 1990s,” Westpac chief economist Bill Evans said. “Of most concern is confidence around jobs – which has been the single
bright spot in otherwise bleak consumer surveys over the last year. This now looks to be fading fast.”