Welcome to the Rollercoaster Ride of Consumer Sentiment
What’s Happening with ANZ Roy Morgan Weekly Survey?
According to the latest ANZ Roy Morgan weekly survey of consumer sentiment, the index has come in at 85.5. This is a noticeable dip from the previous week’s figure of 87.8. ANZ has commented on the result, highlighting that the latest data is offsetting the gains that were seen over September.
Insights from the Survey:
- Confidence fell in all mainland states, marking its first synchronous drop since early August.
- Weekly inflation expectations spiked by 0.6ppt to 5.6 per cent, reaching its highest level since mid-August.
- The four-week moving average also rose by 0.1ppt to 5.4 per cent, maintaining deeply pessimistic levels.
This sudden shift in consumer sentiment can have significant implications for individuals, businesses, and the economy as a whole. Let’s delve deeper into how this could impact us.
How This Could Impact Me:
As a consumer, a drop in sentiment could lead to reduced spending and investment. With inflation expectations on the rise, you may feel a squeeze on your purchasing power. This could translate to making more cautious decisions when it comes to big-ticket items or discretionary spending.
How This Could Impact the World:
On a larger scale, a decline in consumer sentiment can signal a slowdown in economic growth. Businesses may become more hesitant to expand or hire new employees, leading to potential job losses and reduced economic activity. This could have ripple effects on global markets and impact trade relations between countries.
Conclusion:
Consumer sentiment is a key indicator of the economic health of a society. As the ANZ Roy Morgan weekly survey shows a decline in sentiment, it’s essential to monitor how this trend evolves in the coming weeks. By staying informed and understanding the implications, individuals and businesses can better navigate the challenges that lie ahead.
