Consumer confidence slides with confirmation of recession

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File photo. The latest ANZ-Roy Morgan consumer confidence survey found a net 24 percent of respondents think it is a bad time to buy a major household item.
Photo: 123RF

Consumer confidence has been knocked down putting an end to a steady improvement in sentiment over recent months.

ANZ-Roy Morgan consumer confidence fell 9 points in March to 86.4, with sentiment hit by the downturn in the economy and confirmation of a recession in the last half of 2023.

Measures under 100 show pessimists outweigh optimists.

ANZ chief economist Sharon Zollner said late-month responses were markedly weaker than those that preceded the release of last week’s economic data.

“And for the majority of people, the labour market is the business cycle: wage increases, job security, the ease of finding a new job – and all are heading south,” she said.

Two-year inflation expectations were unchanged at 4.5 percent, though expected house price inflation fell to 3.4 percent from 4.1 percent.

A net 24 percent thought it was a bad time to buy a major household item – down 6 points – ending what had been “a steady run of improvement”, she said.

“To be sure, retail sales have been very weak, ask any shopkeeper. But the fall in this indicator was extreme as inflation took off”.