Confidence strengthens further

The confidence winning streak continues for the fifth straight week, with a gain of 0.7%. Confidence is up 6.1% over this period and is up more than 10% since the second weekend of August when it fell to its lowest level since April.

‘Current financial conditions’ gained 3.3%, while ‘future financial conditions’ gained 0.3% for its fourth straight weekly gain.

Running in the other direction, however, ‘current economic conditions’ declined 1.1%. This did come off the back of a gain of 10.3% in the previous reading. ‘Future economic conditions’ gained 1.6%, its third straight weekly increase.

‘Time to buy a household item’ fell 0.5%, its third straight weekly decline. The four-week moving average of ‘Inflation expectations’ gained 0.1 ppt to 3.4%.

“Continued improvement in the local news around the pandemic and talk of early tax cuts and other fiscal measures in the Budget led to a gain in consumer confidence for the fifth straight week,” ANZ Head of Australian Economics, David Plank said.

“Consumers are still pessimistic, but confidence is at its highest level since June. Melbourne saw a sharp uptick in confidence as the removal of the curfew helped in lifting sentiment, although it is still 8.6% below the neutral level of 100.

“Today’s announcement on the fiscal details will heavily influence the direction of the index in the coming weekend.”

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