Consumer confidence lifts for fourth week

Consumer confidence rose 1.6 per cent last week, the fourth consecutive gain. All subindices rose except for ‘time to buy a household item’, which fell 1.0 per cent.

The overall gain was driven by another big jump in ‘current economic conditions’ (up 10.3 per cent), while ‘future economic conditions’ edged up 0.5 per cent.

Financial conditions improved with ‘current finances’ up 1.0 per cent and ‘future finances’ up 0.3 per cent.

The four-week moving average for ‘inflation expectations’ edged down to 3.3 per cent.

“Consumer confidence improved for the fourth week straight to its highest level in more than three months,” ANZ Senior Economist Catherine Birch said.

“By far the largest contribution came from ‘current economic conditions’, which has jumped almost 20 per cent over the past fortnight.”

“This likely reflects expectations for significant additional spending to be announced in next week’s federal budget. In the Treasurer’s speech last week, he outlined an updated fiscal strategy focussing on the jobs and economic recovery, rather than repairing the fiscal position, until the unemployment rate is ‘comfortably’ back under 6 per cent.”

“In contrast, ‘current financial conditions’ has effectively plateaued for several weeks. This indicator will be one to watch as JobSeeker and JobKeeper payments are reduced.”

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