Dec 06, 2022
Consumer confidence edges up
Consumer confidence edged up 0.2 points last week, despite the Reserve Bank of Australia's decision to lift the official cash rate by 25 basis points.
‘Weekly inflation expectations’ rose 0.1 percentage point to 5.9 per cent, while its four-week moving average fell 0.1 percentage point to 6.1 per cent.
‘Current financial conditions’ gained 2.7 points, after a 4.9 point drop the week before. ‘Future financial conditions’ rebounded 2.6 points from the 1.8-point loss the previous week.
‘Current economic conditions’ jumped 4.3 points to its highest level since late September, but ‘future economic conditions’ declined 1.3 points.
‘Time to buy a major household item’ plunged 6.8 points after a 4.0-point jump the week before.
“Consumer confidence increased marginally last week despite the RBA raising the cash rate 25 basis points on Tuesday,” ANZ Senior Economist Catherine Birch said.
“This was the first time in the current tightening cycle confidence has improved after an increase in the policy rate, perhaps a sign that households expect a pause soon.
“While confidence dropped 1.3 points for households paying off their mortgage - to be below 80 for the ninth-straight week - confidence lifted for homeowners (+1.9 points) and renters (+0.2 points).
"We’ll be watching the December spending data carefully for signs of a slowdown following the 6.8-point drop in the 'time to buy a major household item' index to a four-week low."