Australian weekly consumer confidence continues to rise. The ANZ-Roy Morgan Australian consumer confidence rose 0.8 percent, continuing the upward momentum of the previous week. The gain was led by a lift in sentiment surrounding economic conditions – both for the next year and the long term.
Current finances rose 1 percent, while future financial conditions dropped 3.9 percent and, in contrast to current finances, are below average. Current economic conditions rebounded from its lowest point in four years, gaining 3.9 percent. Future economic conditions also bolstered and gained 2.7 percent. Both remain well below average.
‘Time to buy a major household item’ rose 1.9 percent, building on last week’s sharp rise of 5.3 percent. However, it continues to be below its long-run average. The four-week moving average of inflation expectations dropped 0.1 percentage point to 3.9 percent, as the weekly reading weakened to 3.9 percent from 4.1 percent.
“It is encouraging to see a second week of positive momentum in consumer confidence. Especially given the slew of negative news over the past week: weaker than expected GDP, soft retail sales, bush fires and the smoke haze in Sydney and much of New South Wales. It is possible that the RBA’s positive outlook supported sentiment. Continued gains in house prices may also be supporting sentiment”, commented ANZ Head of Australian Economics, David Plank.
