Consumer Confidence Hits 11-Month Low Ahead of RBA Meeting
Consumer confidence in Australia has declined by 1.8 points to 81.3 ahead of the Reserve Bank's meeting on interest rates. This marks a record 79 consecutive weeks below the 85-point mark. Despite the drop, the index is 6.3 points higher than the same week last year and slightly above the 2024 weekly average of 81.8 points. The decline is attributed to decreasing confidence in personal finances and the long-term economic outlook, with only 10% of respondents expecting favorable economic conditions over the next five years, compared to 20% anticipating unfavorable conditions. Weekly inflation expectations rose to 5.1%, while confidence in both current and future financial conditions fell.
In Thailand, consumer confidence fell for the fifth consecutive month in July, reaching its lowest level since August last year, with the index dropping to 57.7 from 58.9 in June. Concerns over a slow economic recovery, rising living costs, and political instability contributed to the decline. The University of the Thai Chamber of Commerce noted that consumers are worried about future political unrest and the lack of clear economic stimulus measures. Upcoming Constitutional Court verdicts regarding the dissolution of the opposition party Move Forward and the potential dismissal of Prime Minister Srettha Thavisin are adding to the uncertainty. The university suggested that accelerating budget allocations and implementing household-focused economic stimulus plans could help improve consumer confidence.
In Kenya, job creation in the business sector slowed in July, marking the slowest pace since the beginning of the year, according to the Stanbic PMI report. Factors contributing to this slowdown include protests, increased fuel prices, and tighter financial conditions. Business activity declined across agriculture, manufacturing, and other sectors, with the PMI index falling from 47.8 in June to 45.5, remaining below the 50.0 neutral mark for the sixth consecutive month. Business confidence was the second-lowest on record, and the contraction in output was the deepest since August 2022. Despite these challenges, inflation rates remained softer than earlier in the year.
