Confidence tumbles

CONSUMER confidence has fallen below its long-run average amid worries over North Korea and concerns over subdued wage growth.

The latest ANZ-Roy Morgan Consumer Confidence Index fell 1.8 per cent to 111.7 in the week to August 13, dipping below the long-term average of 112.9. ANZ head of Australian economics David Plank said, after a period of recovery, consumer sentiment has been trending lower in recent weeks – most likely because of the war of words between the United States and North Korean governments.

Mr Plank said three out of the five subindices posted declines, with consumer sentiment towards current economic conditions down six per cent on the back of the prior week’s decline of more than 10 per cent. He said wage growth continues to weigh on consumer’s minds.