Morale has been low for several months in response to cost of living pressures and interest rate hikes and has now fallen to its lowest level since the COVID-19 lockdowns sent confidence plummeting in April 2020.
The ANZ and Roy Morgan’s weekly index fell 3.1 points over the week, led by solid falls in current and future economic conditions.
The “current economic conditions” indicator fell 3.5 points and “future economic conditions” sunk 3.1 points.
After the “time to buy a major household item” survey question staged a recovery for three weeks in a row, these gains were unwound by a 7.6 point fall.
ANZ senior economist Adelaide Timbrell said confidence about current financial conditions, future financial conditions and whether it was time to buy a major household item were all close to their lowest levels since March 2020.
“Confidence fell among renters, outright owners and those paying off their homes, though those paying off their homes fell to a record low,” Ms Timbrell said.
The poor result follows another interest rate rise in June and posturing from the Reserve Bank suggesting there is more tightening to come.
The 25 basis point hike in June brought the official cash rate to 4.1 per cent.
In a positive sign for the economy, travel patterns continue to normalise after the COVID-19 pandemic disruptions.
Australia saw 1,370,470 total arrivals in April, according to the Australian Bureau of Statistics, an increase of 796,540 from the same month last year.
A total of 1,425,150 departures were recorded over the month, an annual increase of 818,450.
There were 544,920 short-term visitor arrivals in Australia in April, amounting to a 309,450 lift compared to last year. Most of these visitors were from New Zealand.
Despite the annual boost, short-term arrivals were still 22.2 per cent lower than April 2019 before the pandemic hit.
A total of 750,170 short-term trips were recorded for residents returning from overseas, which was an increase of 467,540 compared to this time last year.