Consumer confidence
That is a fair drop for the ANZ-RM consumer confidence print.
It is at odds with the level of the market, in general, & with some of the sector specifics (e.g. the strength in discretionary retail) as well as broader metrics like credit demand for housing, in which purchases are typically only undertaken if the buyer has confidence in employment and income prospects over the medium to longer run.
COVID effects (illness, supplies) writ large. When people respond to the survey against a backdrop of daily cases in the 10’s of 1000’s, it isn’t especially surprising.
Still we are mindful that confidence is one of our better macro market timing indicators (DAA timing device) and as such use it as part justification for our modest UW to Australian equities.
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