Consumer confidence breaks losing streak

Consumer confidence gained 2.4 per cent last week, the increase coming after seven straight weeks of decline. All the subindices gained with the exception of ‘current finances’.

‘Current finances’ went against the overall trend with a fall of 1.9 per cent, though this came after a gain of 2.7 per cenmt last week, while ‘future finances’ gained 4.2 per cent.

‘Current economic conditions’ increased by a massive 10.6 per cent, after a cumulative fall of 30 per cent over the prior eight weeks, while ‘future economic conditions’ rose 1.6 per cent.

‘Time to buy a household item’ gained 1 per cent compared to a fall of 8.6 per cent in the previous reading. ‘Inflation expectations’ was stable at 3.3 per cent (four-week moving average).

“Confidence strengthened last week as the rate of growth in COVID-19 cases declined in Melbourne and Sydney,” ANZ Head of Australian Economics, David Plank said.

“The positive July labour market data, which was better than market expectations, may have contributed to the lift in sentiment.”

“The confidence of Melbourne consumers lifted the most, but is still the lowest of the major capital cities. The move higher follows seven straight weeks of falls, so a tick up was due.”

“With confidence remaining at a level that is well below average we aren’t getting too carried away by the positive result. Consumers are still very cautious about the outlook.”

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