Consumer Confidence rebounds 25 January

Consumer confidence increased 2.2 per cent last week and settled just above the neutral level of 100. It was driven by increases in confidence in Victoria, Queensland and WA, partially offset by decreases in NSW and SA.

‘Weekly inflation expectations’ rose 0.1ppt to match its recent high of 5.0 per cent. Its four-week average also rose 0.1ppt to 5.0 per cent.

‘Current financial conditions’ jumped 6.3 per cent after an 11.3 per cent drop the week before. ‘Future financial conditions’ gained 0.6 per cent.

‘Current economic conditions’ softened 0.5 per cent, its third consecutive decline. ‘Future economic conditions’ dropped 0.9 per cent.

‘Time to buy a major household item’ increased 6.3 per cent after a fall of 15.8 per cent during the first two weeks of 2022.

“Consumer confidence increased 2.2 per cent last week, rising above the neutral level of 100. The recovery came in the same week that the unemployment rate was reported as dropping to its lowest in more than 13 years.” ANZ Head of Australian Economics, David Plank said.

“COVID cases appear to have peaked, though deaths unfortunately made new highs.”

“Confidence was driven by rises of 7.7 per cent in Victoria, 8.8 per cent in WA and 3.7 per cent in Queensland. But it dropped in NSW (-2.4 per cent) and SA (-2.6 per cent).”

“The live entertainment of the Australian Open tennis and great weather might have added to Victoria’s positive outlook. Ahead of the Q4 2021 CPI data, inflation expectations recorded a 0.1ppt rise to match the recent high of 5 per cent reached in December.”

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