ANZ-Roy Morgan Flag Further Signs Of A More Cautious Consumer

The latest weekly ANZ-Roy Morgan consumer confidence survey reveals that "consumer confidence declined by 0.4pts last week to 82.5, ending 2022 almost 30pts below the long-term average. Over the past four weeks, confidence has steadied within a narrow range in the low-80s. Last week’s decline was largely driven by a 3.5pt drop in the ‘economic conditions next year’ subindex. The persistent weakness in sentiment now appears to be weighing on household spending. ANZ-observed data suggest spending lost momentum early in the holiday season, which could signal the beginning of a cyclical slowdown. In 2023, we’ll be watching how confidence responds to the combination of falling inflation and rising nominal wage growth. It’s possible we’ll see a sustained improvement, even under the burden of higher rates."