According to new research from Roy Morgan, consumer confidence has hit a decade low at 100.0.
While over the past week confidence was down just -0.4 per cent, consumer confidence is still at its lowest since 2009. The small fall over the last week, however, remains somewhat surprising result given the COVID-19 pandemic – it’s possible the government’s fiscal package contributed to the resilience.
ANZ Head of Australian Economics David Plank said: “Despite all the gloom last week, confidence only fell marginally. It is, however, at its lowest level since 2009. This is the more important point. The weakness was predominantly due to another sharp drop in the current economic conditions subcomponent.
“This component is now approaching the lows seen during the GFC. The divergence between financial and economic conditions remains large. The labour market will likely determine how that gap is closed, which makes this week’s employment data important.
“We are expecting bad news, with an outright drop in employment likely. Offsetting this may be a further stimulus package from the Commonwealth Government, which will add to the fiscal stimulus now being delivered by a number of states. The RBA is also set to cut to 0.25 per cent and announce QE on Thursday.”
You can see the current consumer confidence statistics from ANZ below.
