The Wesfarmers Ltd (ASX: WES) share price is slightly in the red today amid mixed economic data.
Wesfarmers shares are down 0.19% at the time of writing and trading at $44.055. However, in earlier trade, the shares climbed 0.52% before retreating. For perspective, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.15%.
Let's take a look at what could be weighing on the Wesfarmers share price today.
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Consumer confidence falls, business conditions lift
Wesfarmers is a retail giant that owns Bunnings, Kmart, Target, Priceline and Officeworks, among other major brands.
Wesfarmers is not the only consumer share that is relatively flat today. The Coles Group Ltd (ASX: COL) share price is up 0.18%, while Woolworths Group Ltd (ASX: WOW) shares are up just 0.03%.
ANZ-Roy Morgan data, released today, shows consumer confidence fell 0.9 points to 84.6 in the past week. This follows the Reserve Bank of Australia lifting interest rates by 25 basis points.
ANZ head of Australian economics David Plank said:
Consumer confidence dropped by 1.1% last week, despite the smaller than expected 25bp rate hike by the RBA. The decline was bigger than the 0.5% decline following September's 50bp rate increase.
Westpac Melbourne Institute Index of Consumer Sentiment data, also released today, showed sentiment fell 0.9% in October.
However, chief economist Bill Evans highlighted the RBA's "smaller than expected" rate rise "averted a much bigger fall". He added:
The index remains in deeply pessimistic territory at a level comparable to the lows briefly reached during the pandemic and the extended weakness experienced during the Global Financial Crisis.
Meanwhile, a NAB monthly business survey released today shows business conditions lifted three points to +25 index points in September.
NAB said wholesale and retail conditions rose "notably" during the month.
Commenting on these business conditions, NAB chief economist Alan Oster said:
Conditions are now higher than their pre-COVID peak, which shows just how strong demand is at present.
The current level of conditions are only exceeded by the post-lockdown surge in early 2021.
Wesfarmers paid a fully franked final dividend of $1 per share in FY22.
Wesfarmers share price snapshot
Wesfarmers shares have fallen 19% in the past year, while they have lost nearly 26% year to date.
For perspective, the ASX 200 has shed nearly 9% in the past year.
The retail giant has a market capitalisation of about $50 billion based on the current share price.
