In the week ending 25 September, the ANZ Roy-Morgan Australian consumer sentiment rebounded. It rose strongly by 4.4 percent and more than countered the previous week’s decline. The rebound seen in the consumer sentiment was widespread. Households’ views regarding their current finances surged 5.4 percent, whereas their views regarding their future finances increased a strong 4 percent. The indicator on current finances is at a post-GFC high.
Meanwhile, consumers’ views about the outlook of the Australian economy were also quite optimistic. Views of the 12-month economic outlook sharply increased by 6 percent, whereas views of the five-year outlook rebounded by 3.6 percent. Views of consumer on whether ‘now is a good time to buy a household item’ improved sharply by 3.8 percent. In the meantime, the inflation expectations series was up 0.1 percentage points to 4 percent in September, noted ANZ.
“Consumer confidence continued its volatile pattern, bouncing 4.4 percent last week and more than reversing the previous week’s 2.2 percent decline. Stepping back from the volatility, confidence has been trending higher since early 2016 and is now well above its long run average”, said ANZ senior economist Jo Masters.
According to Masters, there was little economic news or developments to boost the improvement in confidence. Concerns regarding financial market volatility are expected to have diminished as equity markets rallied off their recent lows, added Masters. Also, domestic factors continue to be positive, markedly the solid GDP reading, high auction clearance rates and continuous improvement in labor market conditions. In all, Australian consumers continue to be positive regarding their personal finances and regarding the economy, particularly in the near term, noted Masters.
