AMP Capital's chief economist Shane Oliver said there was ''no doubt'' the budget announcement also had an impact. ''In May we saw a sharp almost 7 per cent decline in consumer confidence,'' Dr Oliver said. ''If 150,000 people lose their family tax benefits and there's the fear factor for everyone else, no doubt it will have an impact.''
ANZ senior economist David Cannington agreed. ''If you look at some of the sharp falls in consumer confidence since the Commission of Audit recommendations and the federal budget, that has really coincided in some weakness we've seen in auction activity and also house prices,'' he said.
''Home buyers are sensitive to particular negative news-flow and I do think that has had an impact on home-buyer confidence.''
Commonwealth Bank senior economist John Peters said the ''million-dollar question'' was whether the lull in confidence continues. ''If it's not reversed it will probably flow through to softer retail trade, consumer spending and activity like housing loans,'' he said.
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