The ANZ-Roy Morgan Australian consumer confidence index rose 0.4 percent, rising for the eight consecutive week. The sentiment is up 42 percent from its low point in March, when fears regarding the pandemic were at the most extreme.
The financial conditions indices diverged in the week. ‘Current finances’ dropped 1.8 percent, while ‘future finances’ rose 3.2 percent and is now only slightly below average. Economic conditions indices also diverged with ‘current economic conditions’ rising 0.3 percent, while ‘future economic conditions’ fell 2.4 percent.
‘Time to buy a major household item’ rose further, rising 2.5 percent. The four-week moving average for ‘inflation expectations’ dropped 0.1 percentage point to 3.3 percent, a new historic low.
“Confidence strengthened further last week, albeit modestly. While still below average, sentiment has recovered strongly from its March low and is now only around 15 percent below its level at the end of February. Government measures and signs that the job market is stabilising seem to be playing a key part in the recovery of the index despite recent concerns over trade with China and weak retail sales. These factors, and the move in Australia’s credit rating to a negative outlook by Fitch, may explain why expectations about the ‘future economic outlook’ fell” commented ANZ Head of Australian Economics, David Plank.
