16 Jun 2012

Consumer confidence slumps

8:01 am on 16 June 2012

Consumer confidence has slumped to its lowest level in a year.

A regular poll, the ANZ-Roy Morgan Consumer Confidence Index fell more than 8 points to 105.8 points in June, with households becoming more cautious about their own outlook and less positive about the economy's prospects.

A reading over 100 indicates optimism.

ANZ chief economist Cameron Bagrie suspects the drop in optimism is due to the deteriorating global situation.

Some local dynamics, such as the labour market were seen as encouraging, and the property sector was holding its ground, so the fact that there has been a retreat in terms of overall optimism is a "pretty telling" comment on perceptions of the international markets, he says.