Daily Flows
- We continue to see flows into fixed semi-government lines across NSW and ACT stock.
- Investors looking to extend their terms have opted to place funds with AMP (A-2/BBB+), which is offering market-leading rates of 4.80% for 2 years.
- AMP (A-2/BBB+) remains competitive on the bid today, offering high rates as follows: 3 months 5.15%, 6 months 5.20%, 9 months: 5.15%, 12 months: 5.10%.
Consumer Sentiment Retraces After Two Strong Months
- Australian consumer confidence fell sharply in December, with the Consumer Confidence MoM measure declining to -2% from 5.3% in November, reversing recent momentum.
- The decline was driven by renewed pessimism about the economic outlook. Sub-indexes for “economic outlook (12 months)” and “economic outlook (5 years)” fell 9.6% and 7.9%, respectively, retracing about half of the recent gains.
- December’s decline likely reflects the disappointing Q3 GDP report, which showed annual growth slowing to 0.8%. This reflects flatlining private demand over the past six months, alongside inflation concerns and lingering uncertainty regarding interest rate cuts.
- Overall, while consumer sentiment has materially improved throughout 2024, it remains pessimistic. Renewed caution heading into 2025 is driven by domestic and global uncertainties
