Consumer confidence leaps

Consumer confidence rose sharply amid the receding Brisbane lockdown and announcment of the Trans-Tasman travel bubble.

Headline consumer confidence shot past its long-run average value to 114.1 with a gain of 5.9 per cent, reaching its highest value since September 2019.

‘Current financial conditions’ took a huge leap of 8.3 per cent, while ‘future financial conditions’ rose 4.8 per cent. ‘Current economic conditions’ gained 7.1 per cent and ‘future economic conditions’ jumped 4.5 per cent. All of these four indices more than made up for the points lost last week.

‘Time to buy a major household item’ improved 5.7 per cent. ‘Weekly inflation expectations’ rose 0.2 per cent to 3.9 per cent, its highest level since the early stages of the pandemic, but the four-week moving average remained steady at 3.8 per cent.

“The receding of the Brisbane lockdown and announcement of the Trans-Tasman travel bubble has seen confidence jump sharply, to above its long-run average and the highest level since late 2019,” ANZ Head of Australian Economics David Plank said.

“The jump has occurred despite the delay in the COVID-19 vaccine rollout.”

“In an article last week we argued while the direct economic impact of the Trans-Tasman travel bubble might be a small negative, it was likely to be more than offset by the impact on sentiment as the restoration of normality comes at least somewhat closer. These data confirm this expectation.”

/Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.