GDP hit to confidence

CONSUMER confidence has fallen in the past week on the back of weaker-than-expected gross domestic product figures and as households remain concerned about financial conditions.

The latest ANZ-Roy Morgan Consumer Confidence Index shows a 2.5 per cent drop to 116 points in the week to March 11, dragged down by households’ pessimism towards current and future financial conditions, which fell 5.5 per cent and 1 per cent respectively.

ANZ’s head of Australian economics David Plank says the broadbased fall in confidence reflects the disappointing GDP data released last week, which showed economic growth slowed to 0.4 per cent in the December quarter, taking annual growth to 2.4 per cent.