Nov 22, 2022
Consumer confidence rises for third week
Consumer confidence rose 1.8 per cent, its third-straight weekly gain. Among the mainland states, confidence increased in Victoria, Queensland and Western Australia, while it declined in New South Wales and South Australia.
‘Weekly inflation expectations’ dropped 0.1 percentage points to 6.2 per cent, while its four-week moving average also fell 0.1ppt to 6.5 per cent.
The subindex results were mixed. ‘Current financial conditions’ jumped 9 per cent, partially making up for the 12.3 per cent net drop over the previous eight weeks. ‘Future financial conditions’ were up 2.8 per cent.
‘Current economic conditions’ dropped by 0.3 per cent. ‘Future economic conditions’ gained 0.3 per cent, its third consecutive gain. ‘Time to buy a major household item’ fell 2 per cent after a 9.2 per cent jump the week before.
"Consumer confidence increased 1.8 per cent last week, with a cumulative gain of 5.6 per cent over the past three weeks," ANZ Head of Australian Economics, David Plank said.
"Confidence is at its highest since early October but is still at exceptionally weak levels. The increase was mainly driven by the ‘financial situation compared to a year ago’ and ‘financial situation next year’ rising 9 per cent and 2.8 per cent respectively.
"Household inflation expectations dropped 0.1 percentage points to 6.2 per cent, its seventh straight week above 6 per cent. The drop in October retail sales suggests weak confidence may finally be impacting household spending. But changing seasonal patterns may explain some of the softness.
"ANZ-observed spending data from last week will provide an insight into whether consumers held back in October to spend big on Black Friday sales."