By James Glynn
SYDNEY--Australian consumer confidence fell 2.6% last week, erasing gains seen through September, as global market volatility and a sharp rise in domestic fuel costs hit sentiment hard.
According to the confidence data from the ANZ Bank and pollster Roy Morgan, confidence dropped across all states in the first synchronous fall since early August.
Weekly inflation expectations spiked by 0.6 percentage points to 5.6%, its highest level since mid-August, the data showed.
"A plethora of negative news last week ranging from the UK's mini budget to hawkish Fed commentary impacted the Australian dollar, which weakened to its two-year lows," said ANZ head of Australian economics David Plank. Softer consumer confidence often follows currency weakness.
The jump in inflation expectations was likely linked to the end of a temporary petrol excise cut and uptick in gasoline prices during the week, he added.
"Consumer confidence will remain fragile as long as market volatility is the dominant theme globally," Mr. Plank said.
Sentiment around current economic conditions was down by 7.6% last week while future economic conditions declined 7.5%. Current financial conditions fell by 1.5%, while future financial conditions weakened by 1%.
Confidence around buying a major household item was the only subindex to improve, rising 4.8%, its fifth consecutive weekly gain, the survey showed.
The weekly ANZ-Roy Morgan Australian Consumer Confidence Rating is based on 1,453 interviews conducted online and over the telephone during the week to Sunday.
Write to James Glynn at James.Glynn@WSJ.com
(END) Dow Jones Newswires
October 03, 2022 18:49 ET (22:49 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.