Consumer confidence lifts again 27 October

Consumer confidence gained 1.6 per cent last week and is now at a six-month high, just below neutral levels. All the subindices rose.

‘Current financial conditions’ gained 3.5 per cent, while ‘future financial conditions’ gained 1.2 per cent.

Following a similar pattern, ‘current economic conditions’ lifted 2.6 per cent, its third-straight weekly increase, while ‘future economic conditions’ gained 1.1 per cent.

‘Time to buy a household item’ rose 0.4 per cent. The four-week moving average of ‘inflation expectations’ edged lower by 0.1 percentage points to 3.4 per cent; the weekly reading saw a sharp fall of 0.5 percentage points to its lowest-ever level of 3 per cent.

“Amidst falling active COVID-19 case numbers and hopes of a further easing of restrictions, confidence gained for the eighth-straight week,” ANZ Head of Australian Economics David Plank said.

“Overall sentiment iscjust below the neutral level and at a six-month high. It remains well below theclong run average, however.”

“Sydney and Melbourne are now close to neutral. People remain cautious about the current economic outlook and, consistent with this, are also cautious about their current financial circumstances. This may constrain spending in the near term.”

“Confidence in future economic and financial conditions is much more positive, however, holding out the prospect of a recovery in spending if the labour market holds up.”

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