This weekly release does not tend to move the FX much (if any). But as background information its worth paying heed to.
A string of poor results from this indicator in the past 3 weeks
(graph via Bloomberg)
Business conditions and confidence indicators have been solid, indeed improving.
Consumer measures though ... well, you can see for yourself above.
Reasons? Perhaps:
- Higher energy costs (electricity) and more to come
- Slow growth in wages
- Politics in Australia (ongoing dual citizenship debacle)
Other thoughts welcome, that list is just me guessing.
regardless of the reasons the sharp falls, sustained over 3 weeks now, are a worry going forward, it may weigh on household spending, consumption ... and economic growth in turn.
ANZ on the relationship with politics:
ps. I saw something the other day about rising electricity costs acting a tax hike (or was it an interest rate rise?) on consumers, I'll see if I can dig it up
