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Share market losses weigh on confidence

AAP logoAAP 19/09/2016

Confidence has fallen as consumers grow more pessimistic about their own finances and the broader economic outlook following share market losses.

Consumer confidence fell 2.2 per cent to 115.5 points in the week ending September 18, the ANZ-Roy Morgan Consumer Confidence Survey shows.

ANZ head of Australian economics Felicity Emmett said the drop likely came on the back the heavy losses on the ASX earlier in the survey period.

"Equity markets have now rebounded from last week's lows. As such, we think consumers will likely turn their focus back to domestic fundamentals," she said.

"The strength in the housing market, low interest rates, and an improving labour market should all continue to support confidence in the near term."

Consumers' view of their finances now compared to a year ago and of their future finances both dipped 1.8 per cent in the week.

Meanwhile, respondents were also more pessimistic about the broader economic outlook.

Households' views of the 12-month outlook were down 1.1 per cent in the week, while their views of the five-year economic outlook dropped 1.4 per cent.

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