Consumer confidence: up across the board
ANZ-Roy Morgan Australian Consumer Confidence bounced 1.2% to 121.5 last week, following four straight weekly declines. The details were also positive with all subindices posting gains.
Consumers’ views towards current financial conditions improved 1.5% last week partially recovering from the 2.7% decline in the previous week. Sentiment around future conditions rose 0.5% on the back of a 1.5% rise in the previous week.
Households’ assessment of current economic conditions was broadly flat (0.2%), following a solid 2.7% rise previously. Consumers were more optimistic about future economic conditions however, which were up 1.2% in the week. Both subindices sit above their long-term averages.
The ‘time to buy a household item’ subindex bounced 2.4% last week. Four week moving average inflation expectations edged down to 4.3%.
ANZ Senior Economist, Felicity Emmett, commented:
“Confidence ended its four-week streak of declines, rising 1.2% last week. While we were not especially concerned with the recent modest declines in confidence, it is encouraging to see some stabilisation.
We note that consumers’ views towards future financial conditions have been trending lower since late June, although they remain above their long-run average. Given that the household sector remains a key risk to the outlook we will be watching this subindex over coming weeks.
On the same note, the RBA minutes out later today may provide some insight on the passthrough of lower house prices on the household sector. On the face of it, despite the number of headwinds consumers face, they remain optimistic likely due to a still solid labour market and the prospect of income tax cuts.”