The ANZ-Roy Morgan Australian Consumer Confidence rebounded in the week ending 11 September. It rose a strong 3.3 percent. The four-week moving average rose to 118.2, the highest level since the end of 2013. The second quarter economic report that was released last week was possibly partly responsible for the increase in consumers’ optimism, said ANZ in a research note.
Households’ views of the economic outlook mainly drove the rebound in sentiment. Consumers’ views of the 12-month economic outlook climbed 8.1 percent, whereas view of the five-year economic outlook increased strongly by 4.6 percent. These series have remained very volatile in the past few weeks; however, overall they both continue to be on an upward trend.
Views of households towards their own finances have been increasing at strong rates since the start of 2016. Their views of their current finances was up 1.6 percent, with the four-week moving average reaching a new post-GFC high, added ANZ. Consumers’ views of future finances dropped down 0.3 percent.
Consumers’ view on whether ‘now is a good time to purchase a household item’ was up 3.9 percent, totally countering previous week’s decline, said ANZ.
According to ANZ Head if Australian Economics Felicity Emmett, consumers in Australia continue to be positive regarding their finances and more confident regarding the economy, particularly in the near term. She added that the report indicated that the rebound in non-mining activity continues to gain momentum, with housing being an important driver of growth.
However, the second quarter GDP report indicated that increasing consumer sentiment did not translate into solid consumer spending in the quarter. Consumption has been mainly driving the non-mining recovery and this step down in growth is slightly worrisome, added Emmett.
Emmett stated that the strength in the labor market continues to be mainly driving the confidence.
