Consumer confidence lifts a touch

Confidence gained 0.3 per cent last week. The financial and economic conditions subcomponents were positive, implying the detail was better than the headline suggested.

Current finances gained 2.8 per cent while future financial conditions were up 0.3 per cent. Both the indices are comfortably above their respective long-term average.

The economic subindices were also positive, with current economic conditions gaining 3.4 per cent and future economic conditions rising by 1 per cent.

The ‘Time to buy a major household item’ was the only subindex that fell, dropping 4.4 per cent. The four-week moving average for inflation expectations was flat at 4.0 per cent, though weekly inflation expectations rose for the third-consecutive week.

“Confidence was up marginally last week after two consecutive falls, with the detail a little more positive with all the financial and economic conditions readings rising,” ANZ Head of Australian Economics David Plank said.

“Of particular note, given the upcoming RBA decision, was the stability of inflation expectations at 4 per cent for the four-week moving average. This has printed at 4 per cent for three weeks in a row and is up from the low of 3.8per cent seen in mid-June.”

“This will provide comfort to the RBA that the slide in consumer inflation expectations has been arrested.”