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Consumer confidence slips 3.6%: ANZ

AAP logoAAP 24/10/2016

Consumer confidence has fallen to its lowest level since May after last week's disappointing jobs report.

The ANZ-Roy Morgan Consumer Confidence Index slipped 3.6 per cent in the week ending October 23, reversing a slight blip the previous week.

ANZ head of Australian economics Felicity Emmett said a sharp fall was likely on the back of official job figures showing September's massive slump in the number of people with full-time jobs coupled with stock market declines over the past few weeks.

"Overall, however, the labour market is still improving and this, coupled with ongoing housing market strength, should continue to broadly support confidence," Ms Emmett said in a statement.

Consumers' views towards their current finances edged down 0.2 per cent while their views of current economic conditions dropped 2.7 per cent last week.

But they were far more pessimistic about the future with their expectations of their finances over the next 12 months plummeting 7.1 per cent and their views of economic conditions over the next five years slumping 4.9 per cent.

Meanwhile, Ms Emmett noted that the inflation expectations index remained stable at +4.2 last week.

"Heading in to the third quarter inflation report this week, inflation expectations have been trending a bit higher," she said.

"But, with the data expected to show still weak inflationary pressures, and inflation outcomes an important driver of inflation expectations, we will be watching this series closely over the next few weeks."

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