Here is a chart we have sourced from Business Insider which tells an interesting story. This week NAB’s business confidence hit its highest point since pre-GFC rising 15 points from 8 points in June. Business confidence rose 12 points from 8 points, which is double the long-run average. Then on the other hand the ANZ Roy Morgan Consumer Confidence index dropped to 113.7. That’s a sharp 4.0% drop. The fall in confidence was driven by a reversal of sentiment around economic conditions. Households face a number of headwinds such as subdued wage growth, slower growth in house prices and high household indebtedness. It’s in stark contrast to the business world which is booming. Companies are increasingly confident about the outlook. It’s the first time that consumer confidence has broken apart from business confidence.
Charts that are attractive