Australian Consumer Confidence Falls as Rate Hike Concerns Weigh on Outlook

The ANZ-Roy Morgan Australian consumer confidence fell 1.2 points to 74.7 in the week of June 29 to July 5, ANZ reported Tuesday. The four-week moving average rose 1 point to 73.5 points, per the report. Australian consumer confidence fell last week as households grew more pessimistic about the financial and economic outlook, despite a lift in buying sentiment for major household items amid end-of-fiscal-year sales, according to ANZ economist Sophia Angala. Confidence was further weakened as the Reserve Bank of Australia's June meeting minutes strengthened expectations of a potential rate hike, while signs of slowing economic activity pointed to continued weakness in consumer demand, Angala added. Weekly inflation expectations fell to 5.4% from 5.6%, while the current financial condition indicator for 12 months decreased 0.6 points to 63.9. The future financial conditions for the next 12 months fell to 82.6 points from 84.8. Short-term economic confidence for the next year fell 3.9 points to 67.2, while medium-term economic confidence for the next five years decreased to 82.5 points from 83.1. The "time to buy a major household item" subcategory rose 1.4 points to 77.5..