Nov 04, 2020
Consumer confidence hits eight-month high
A sharp improvement in ‘time to buy a major household item’ index has pushed consumer confidence above the neutral level for the first time since early March. On a weekly basis, consumer confidence rose 3.2 per cent.
‘Current financial conditions’ reversed its previous week’s fall and rose by 6.1 per cent. ‘Future financial conditions’ declined by 1.2 per cent.
‘Current economic conditions’ rose by 1.8 per cent, its fifth-consecutive weekly gain. The ‘future financial conditions’ rose by 0.2 per cent.
‘Time to buy a major household item’ jumped by 10 per cent to its highest level since early March. The four-week moving average of ‘inflation expectations’ remained stable at 3.4 per cent.
"Consumer confidence is now above the neutral level for the first time since the pandemic began, posting its tenth gain in a row to hit an eight-month high," ANZ Head of Australian Economics David Plank said.
"Notably, there is sharp improvement in ‘time to buy a major household item’, which could signal a buoyant Christmas shopping period."
"Lower interest rates and the Reserve Bank of Australia’s commitment to support employment could have been triggers for the gain."
"Our concern over weakness in last week’s ‘current financial conditions’ has relaxed somewhat as the fall turned around this week."