Consumer confidence has fallen despite positive economic data, but it remains elevated and may be translating into strong spending.
The ANZ-Roy Morgan Consumer Confidence Index fell 0.3 per cent in the week ending October 3, following a 2.2 per cent drop the previous week.
However, the index was at a level of 117.5, well above the monthly average since 1990 of 112.8.
ANZ senior economist Jo Masters said last week's overall dip was driven by a 1.5 per cent fall in consumers' views of economic conditions over the next 12 months, which was disappointing given the release of stronger-than-expected retail sales figures and a fall in the trade deficit.
"That said, consumers remain positive about the longer-term outlook," Ms Masters said in a statement on Tuesday.
"Importantly, consumers' views towards current and future financial conditions remain above their long-term trend, likely reflecting strength in the housing market, accommodative monetary conditions, and ongoing employment growth.
"Last week's retail sales data was encouraging and suggests that above-trend consumer confidence may be translating into stronger spending."
Meanwhile, consumers' view of their current finances compared to a year ago fell 0.6 per cent.
But respondents were 0.7 per cent more positive in their view towards their future finances while their view of economic conditions over the next five years was also up 0.7 per cent.
