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Consumer confidence falls back

AAP logoAAP 3/10/2016 Garry Shilson-Josling, Economist

A weekly measure of consumer confidence has fallen but remains well above normal.

The ANZ-Roy Morgan consumer confidence index in the week to October 2 dropped to 117.9, from a five-week high of 120.6 the previous week.

However, the latest reading was comfortably above the post-1990 average of 112.8.

The fall only partly reversed the previous week's rise.

ANZ head of Australian economics Felicity Emmett said the survey showed that consumers were still optimistic about their own finances.

"A strong housing market and ongoing improvement in the labour market are key factors here," she said.

"However, this optimism has not been reflected in consumer spending of late."

Ms Emmett said ANZ's economists would watch for August retail trade figures from the Australian Bureau of Statistics on Wednesday for any signs that the high confidence level was being translated into stronger spending.

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