Oct 06, 2020
October 6, 2020
Consumer confidence strengthens further
The confidence winning streak has continued for the fifth-straight week, with a gain of 0.7 per cent. Confidence is up 6.1 per cent over this period and is up more than 10 per cent since the second weekend of August when it fell to its lowest level since April.
‘Current financial conditions’ gained 3.3 per cent, while ‘future financial conditions’ gained 0.3 per cent for its fourth-straight weekly gain.
Running in the other direction, however, ‘current economic conditions’ declined 1.1 per cent. This did come off the back of a gain of 10.3 per cent in the previous reading. ‘Future economic conditions’ gained 1.6 per cent, its third-straight weekly increase.
‘Time to buy a household item’ fell 0.5 per cent, its third-straight weekly decline. The four-week moving average of ‘inflation expectations’ gained 0.1 percentage point to 3.4 per cent.
"Continued improvement in the local news around the pandemic and talk of early tax cuts and other fiscal measures in the budget led to a gain in consumer confidence for the fifth-straight week," ANZ Head of Australian Economics, David Plank, said.
"Consumers are still pessimistic, but confidence is at its highest level since June."
"Melbourne saw a sharp uptick in confidence as the removal of the curfew helped in lifting sentiment, although it is still 8.6 per cent below the neutral level of 100."
"Today’s announcement on fiscal details will heavily influence the direction of the index in the coming weekend."
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