Nov 10, 2020
Consumer confidence extends gains
An improvement across the majority of the sub-indices lifted headline consumer confidence up by 3.4 per cent last week. This marks eleven-consecutive weeks of gains in consumer confidence.
Building on the previous week’s 6.1 per cent gain, ‘current financial conditions’ rose by 1.6 per cent. ‘Future financial conditions’ lifted by 3.5 per cent.
Confidence in economic conditions improved sharply. ‘Current economic conditions’ rose by 8.2 per cent and ‘future economic conditions’ gained 4.8 per cent.
‘Time to buy a major household item’ softened marginally by 0.2 per cent. This small fall does come after a rise of 10 per cent in the prior week. The four-week moving average of ‘inflation expectations’ remained stable at 3.4 per cent.
"This week’s 3.4 per cent up-tick in confidence, coming on the back of the previous week’s 3.2 per cent rise, is a pretty strong result – especially as it is the 11th gain in a row," ANZ Head of Australian Economics, David Plank said.
"The rise comes on the back of gains across the major subindices and takes overall confidence to its highest level since February."
"The news about the successful vaccine trial no doubt played a major role. The strong result points to a potentially strong Christmas season ahead for retailers."
"The outbreak of local transmission in South Australia reminds us that we aren’t in the clear just yet, but the trend in confidence is very encouraging."