Number was posted earlier: Australian data - weekly consumer confidence drops to 109.5 (prior 114.8)
But what with Brexit I didn't get a chance to say much on it. It tends not to be too have much of an impact on spot FX at the time of release, but this most recent result is a poor one indeed.
- fell of 4.6% from the previous week
- All sub-indices were in the negative
- three components fell more than 5%
headline index and each sub-index are below their long-run averages
ANZ comments:
- Confidence took a significant hit last week, falling well below average.
- We think the soft GDP report and, perhaps more importantly, the focus on a "per capita recession" were the primary factors in the plunge. The last such big decline in confidence was the weekend of the Wentworth by-election, something we thought was unlikely to have a lasting impact on sentiment.
- This decline could be longer-lasting as it appears to be more related to underlying economic conditions. If it proves to be a sustained decline then it is yet more bad news about a household sector that is already under pressure. No doubt the RBA will take note.
