Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


Confidence dips on North Korea tensions

Simone Ziaziaris  |  15 Aug 2017Text size  Decrease  Increase  |  
Email to Friend

Page 1 of 1

SYDNEY - [AAP] Consumer confidence has fallen below its long-run average amid worries over North Korea and concerns over subdued wage growth.

The latest ANZ-Roy Morgan Consumer Confidence Index fell 1.8 per cent to 111.7 in the week to August 13, dipping below the long-term average of 112.9.

ANZ head of Australian economics David Plank said, after a period of recovery, consumer sentiment has been trending lower in recent weeks--most likely because of the war of words between the United States and North Korea.

US president Donald Trump last week refused to step back from his threat to hit North Korea "with fire and fury"--or to rule out a pre-emptive strike--if it continued to threaten the US, while North Korea responded with threats to land missiles near the US territory of Guam.

Mr Plank said three out of the five sub-indices posted declines, with consumers' sentiment towards current economic conditions down 6 per cent on the back of the prior week's decline of more than 10 per cent.

He said wage growth continues to weigh on consumer's minds on a broader scale, especially considering high debt levels of households and pressures from surging energy costs.

"It will be difficult for consumer confidence to sustain any material rise until we see a lift in wage growth," Mr Plank said.

Email to Friend
Market News and Views Sign up today and receive our free Morning Note e-newsletter, daily in your inbox.

He said wage price data, due out this week, is expected to show that wage growth remains subdued but could mimic first-quarter results that revealed a small acceleration.

"It is possible that this week's data could reveal a further small acceleration, which holds out the prospect of better news on the wages front over the coming year," he said.

Sentiment around future economic conditions was up marginally, just above the long-term average for the first time since March.

Meanwhile, attitudes towards current financial conditions fell two per cent, largely reversing the previous week's improvement, while views towards future financial conditions were up 1.9 per cent.

Inflation expectations for the week edged higher up to 4.6 per cent for a third consecutive week, but were unchanged on a four-week average basis.


AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend