Consumers worried about their hip pockets

Melissa Jenkins
(Australian Associated Press)

 

Consumers are losing confidence in their own finances but feel better about the economy.

The ANZ-Roy Morgan Consumer Confidence Index lifted half a percentage point last week to 114.1, following a strong 3.9 per cent rise the week prior.

While the index is close to its long-term average, householders’ views about their current financial situation slipped two per cent, and sentiment around future financial conditions fell 1.7 per cent.

Consumers are feeling more upbeat about the economy, with views towards current and future economic conditions rising 2.6 per cent and 5.5 per cent respectively.

ANZ senior economist Felicity Emmett said householders were reasonably positive despite the headline consumer confidence figure only advancing slightly.

“The improvement in sentiment around economic conditions in the last two weeks suggests that consumers are cautiously optimistic about the performance of the Australian economy,” she said.

The release of June quarter economic growth figures on Wednesday may impact consumer confidence, Ms Emmett said.

Weak wages growth is dampening consumer sentiment and would likely curtail household spending and slow economic growth, she said.

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