The ANZ-Roy Morgan index made a strong recovery last week, rising 2.8 per cent after the prior week’s 1.1 per cent drop.
Financial conditions were positive, with current finances up 1.6 per cent, while future finances rose for the fourth consecutive week in gaining 2.6 per cent.
Economic conditions finally recovered with substantial gains compared to weak performance for the last few weeks. Current economic conditions gained 2.6 per cent, while future finances were up significantly by 6.8 per cent.
The rise in future economic conditions is pleasing, as this particular sub-index has been in a downtrend for the last four weeks.
The ‘time to buy a household item’ also strengthened, increasing 1.3 per cent. The four-week moving average of inflation expectations declined by 0.1 percentage point to 4.0 per cent.