Apr 12, 2022
Consumer confidence gained 2.3 per cent last week, boosted partly by the Easter long weekend. Among the major states, confidence improved in NSW, Victoria, SA and WA, but dropped in Queensland.
‘Weekly inflation expectations’ dropped 0.5ppt to 5.3 per cent, its lowest level since 6 March. Its four-week moving average dropped 0.2ppt to 5.8 per cent.
All the confidence subindices registered gains for a third straight week. ‘Current financial conditions’ increased slightly by 0.3 per cent, while ‘future financial conditions’ rose 2.7 per cent.
‘Current economic conditions’ increased by 3.8 per cent, rising 16.1 per cent over the past four weeks. ‘Future economic conditions’ gained 2.9 per cent.
‘Time to buy a major household item’ increased 2.4 per cent.
"Consumer confidence increased by 2.3 per cent last week, rising to its highest since 6 March." ANZ Head of Australian Economics, David Plank.
"It is interesting to note that, in a mirror image, household inflation expectations at 5.3 per cent were at their lowest level since 6 March, as petrol prices declined for a fourth straight week. The significant negative correlation between consumer confidence and inflation expectations at the current juncture likely reflects the perceived impact of higher prices on living standards when wages growth remains weak."
Despite the third gain in a row, confidence remains below its neutral level of 100. Oil prices have risen more than 10 per cent from the low at the beginning of last week, so it’s not clear if there is much more room for confidence to be boosted by lower petrol prices (though there may be some lagged impact from the lower excise tax still to flow through)."