Consumer confidence on pause

Consumer confidence was unchanged last week, though softness was seen in three sub-indices compared to just one in the previous reading.

‘Current finances’ declined 1.7 per cent after rising for three straight weeks, while ‘future finances’ fell 3.6 per cent.

Economic conditions were mixed, with ‘current economic conditions’ declining 1.6 per cent, while ‘future economic conditions’ rose by 2.7 per cent.

‘Time to buy a household item’ rose by a healthy 4.1 per cent. The four-week moving average for ‘inflation expectations’ was stable at 3.2 per cent.

“Confidence held up despite weak labour market data and an increase in COVID-19 cases in Victoria,” ANZ Head of Australian Economics David Plank said. “Confidence has been steady since the end of May,”

“Given the backdrop of disappointing news on the labour market and developments in Victoria, we think the result should be seen as encouraging.”

“The consistent improvement in ‘time to buy a household item’ is in line with the ANZ-observed data indicating recovery in retail sales.”

“This component has more than doubled from its historic low at the end of March, though it remains someway below its long-run average.”

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