Budget gives confidence a boost

Confidence gained 2.1 per cent last week, its sixth straight weekly gain. All the subindices gained except ‘current finances’.

‘Current financial conditions’ declined 1.5 per cent, while ‘future financial conditions’ gained 3.7 per cent for its fifth straight week. ‘Current economic conditions’ gained 4.6 per cent and is up around 23 per cent over the six-week confidence gain.

Confidence in current economic conditions is still very subdued, however. ‘Future economic conditions’ gained 3.1 per cent, its fourth-straight weekly increase.

‘Time to buy a household item’ gained 0.5 per cent and the four-week moving average of ‘inflation expectations’ gained 0.1 percentage points to 3.5 per cent.

“Consumers have given a thumbs up to the Australian Federal Budget, with sentiment rising 2.1 per cent to its highest level since the last weekend of May,” ANZ Head of Australian Economics, David Plank said. “This is the second best post-budget gain in the last six years.”

“There were healthy gains in ‘future finances’ and ‘current’ and ‘future’ economic conditions.”

“Surprisingly, sentiment is weaker in New South Wales, including Sydney, than it is in Melbourne. Less surprisingly, confidence is strongest (and above neutral) in Perth. It is also above neutral in Tasmania and South Australia.”

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