Asian Economic News

Australia's Consumer Confidence Weakens

Australia's consumer confidence declined for the second straight time during the week ended June 25, a weekly survey compiled by the ANZ bank and Roy Morgan Research showed Tuesday.

The consumer confidence index fell to 111.8 from 112.4 in the preceding month.

Households' view around current financial conditions were broadly unchanged in the last week. The corresponding index edged down to 99.9 from 100.1.

Their views towards future conditions fell 1.7 percent, following four consecutive weeks of gains.

Inflation expectations remained unchanged at 4.2 percent on a four-week moving average basis.

"Persistently weak wage growth amidst high household debt and hits to household budgets from rising energy costs are all factors that are weighing on confidence," Felicity Emmett, a senior economist at ANZ, said.

"That said, concerns over these issues look to have been at least partly offset by the recent good news on the labour market and, in particular, the fall in the unemployment rate to a four-year low."

by RTTNews Staff Writer

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