ANZ-Roy Morgan Australian Consumer Confidence eased 1.2% last week to 115. Confidence remains above its long term average of 112.9. Three out of five subindices posted falls, including both current and future economic conditions.
Households’ views towards both current and future economic conditions slipped 3.4% and 3.3% respectively last week, after two weeks of solid gains. Views towards current economic conditions remain above their long term average.
Household views toward the state of their current finances slipped for the fourth consecutive week (-2.3%). Even so, current conditions remain above their long term average. Encouragingly, their views towards future conditions rose 1.6% last week, following a 3.0% rise previously.
Sentiment around the ‘time to buy a household item’ improved 0.5%, bringing this subindex back to its long term average (133.8).
ANZ’S HEAD OF AUSTRALIAN ECONOMICS, DAVID PLANK, COMMENTED
“Despite last week’s fall, sentiment towards economic conditions has improved considerably since its low point in early September. Views around current conditions remain above their long term average and overall economic conditions are at their highest point since February.
This improvement is consistent with the results of our ANZ Stateometer, out last week, which showed a continued convergence across states towards accelerating performance, driven primarily by ongoing labour market strength. Additionally, leading indicators suggest scope for further improvement (at a more moderate pace) in labour market conditions, which will support confidence over the coming months.
The recovery in sentiment around the ‘time to buy a household item’ index is also encouraging. A sustained improvement will likely bode well for holiday season sales.”