Australian Consumer Confidence Stays Deeply Depressed Amid Jobs Losses

what happened

Australian consumer confidence stayed near historic lows last week, according to a survey by ANZ Bank and Roy Morgan. The weekly index slipped 0.3 points to 67.7, while its four-week moving average fell 1.1 points to 68.3. The slide follows news that unemployment reached its highest level since 2021, with the economy losing close to 40,000 jobs in September.

Some economists argued that the weak labour market could discourage the Reserve Bank of Australia from raising rates again. Minutes from the RBA's September meeting, however, struck an openly hawkish tone. Weekly inflation expectations rose 0.1 percentage points to 6.2%, far above the central bank's 2.5% target.

why it matters

Persistently weak confidence points to subdued household spending in the near term, which matters for the Australian dollar and consumer-linked shares. The tension between a softening jobs market and high inflation complicates the outlook for RBA rates, so markets will watch the next employment and inflation releases closely.

market impact

AUD/USD and Australian consumer stocks: weak spending and uncertainty over RBA rates add pressure

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