Australia’s consumer confidence falls for third straight week on uncertain election outcome

Australia’s consumer confidence declined for third straight week in a row as uncertainty hovers around the Australian Federal elections' outcome. Moreover, the ongoing global disturbances coupled with ratings agency S&P revising their outlook on Australia to negative have all worked together to pull down consumer confidence in the economy.

Consumer confidence was down 0.5 percent in the week ending July 10. Households’ views of the 12-month economic outlook dipped 4.1 percent, while views towards the economic outlook in the next 5 years declined 2.7 percent.

In contrast, consumers’ views of their current finances edged 0.3 percent higher, while views towards future finances increased a sharp 4.3 percent, largely reversing the fall over the previous week. Consumers’ views towards whether 'now is a good time to buy a major household item' fell 1.3 percent.

"The fall in consumer confidence of close to 3 percent over the past three weeks partly reverses the lift seen through May and early June, back when confidence reached a 2½ year high," said Felicity Emmett, Head, Australian Economics, ANZ.

While overall confidence levels still remain above its long-run average, Emmett casts doubt on whether this trend can continue, suggesting that upcoming Australia unemployment data will be crucial in determining sentiment levels in the near-term, reports said.

Meanwhile, helping to offset those concerns, perceptions about family finances rose, perhaps boosted by the prospect of a further monetary policy easing, not just in Australia but in other major nations too.