Sep 13, 2022
Consumer confidence has increased by 0.4 per cent, almost reversing a small decline recorded in the previous week. Across the major states, confidence increased in New South Wales, Queensland, South Australia and Western Australia, while it dropped in Victoria.
'Weekly inflation expectations’ jumped 0.3 percentage points to 5.6 per cent, while the four-week moving average was steady at 5.4 per cent.
The confidence subindices results were mixed. ‘Current financial conditions’ fell 4.8 per cent, more than offsetting the 4.2 per cent gain over the previous three weeks. ‘Future financial conditions’ climbed 4.5 per cent.
'Current economic conditions’ dropped 2.8 per cent, its second-straight weekly decline. ‘Future economic conditions’ increased just 0.1 per cent. The ‘time to buy a major household item’ index rose 3.7 per cent, its third-consecutive weekly gain.
"Consumer confidence increased by 0.4 per cent last week, almost reversing the 0.5 per cent decline of the week before" ANZ Head of Australian Economics, David Plank said.
"When we look at consumer confidence by housing status the confidence of people paying off their mortgage is greater than those renting for the first time since the Reserve Bank of Australia started raising interest rates in May after confidence of renters dropped by 8.7 per cent last week."
"This may indicate that people with mortgages have taken comfort from recent commentary that the RBA might scale back the size of rate increases in October."
"We think that commentary is misplaced and expect another 50 basis points from the RBA in October. This might come as something of a shock for those with mortgages. Household inflation expectations jumped 0.3 percentage points to 5.6 per cent, its highest since mid-August.