Consumer confidence lifts marginally

Consumer confidence has lifted 0.9 per cent for its sixth-straight weekly gain. Financial conditions indices diverged: ‘current finances’ fell 2.3 per cent and ‘future finances’ rose 1.7 per cent.

Economic conditions reversed the split seen in financial conditions. ‘Current economic conditions’ rose 2.2 per cent for the sixth week, while ‘future economic conditions’ fell 4.1 per cent.

‘Time to buy a major household item’ gained 8.1 per cent. The four-week moving average for ‘inflation expectations’ was stable at 3.4 per cent, though the weekly reading lifted to 3.5 per cent.

“Confidence continued to gain last week, though the pace of increase eased,” ANZ Head of Australian Economics David Plank said.

“The recent gains have resulted in the index recovering some 70 per cent of the fall seen in the last two weeks of March. This likely reflects the continued good news on the path of the pandemic in Australia and the associated progressive easing of restrictions.”

“The challenge for the coming week will be how households react to what is expected to be dire news on the state of the labour market.”

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