ANZ Senior Economist, Felicity Emmett, commented:
“Consumer confidence continues to improve, rising 0.8% last week. The resilience of sentiment is encouraging given ongoing weakness in house prices. In our view this strength is being supported by the strong labour market. The recent fall in petrol prices is also probably helping to buttress confidence.
This week’s GDP and retail sales reports will reveal whether elevated consumer confidence has translated into strength in actual consumer spending. These indicators will be important to watch over coming months to determine if and how the downturn in house prices is feeding through into the real economy.”