Consumer confidence lifts

Confidence increased 0.8 per cent last week, perhaps due in part to the federal budget – though the absence of any additional COVID cases in Sydney also played an important role.

‘Current financial conditions’ rose by 1.6 per cent, while ‘future financial conditions’ were up 0.1 per cent.

In contrast, ‘current economic conditions’ fell by 3.1 per cent. This followed the record low levels of expectations for ‘bad times’ that this subindex registered last week. ‘Future economic conditions’ softened 1.1 per cent.

‘Time to buy a major household item’ gained 6.2 per cent, more than compensating for its loss last week and taking it to the highest level since February 2020.’Weekly inflation expectations’ fell 0.3ppt to 3.6 per cent, pushing the four-week moving average down 0.1ppt to 3.7 per cent.

“Consumer confidence increased by 0.8 per cent, with sentiment in Sydney jumping 5.4 per cent as no new community cases of COVID-19 were reported.” ANZ Head of Australian Economics, David Plank said.

“The greater than expected spending promised by the government in the federal budget may have also provided a boost to confidence.”

“Among the detail, 45 per cent of the responders said it is a ‘good time to buy a major household item’ versus 22 per cent for it being a ‘bad time to buy’, which are respectively the highest and lowest values since February 2020.”

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