Consumer confidence rebounds

Confidence jumped by a solid 4.2 per cent last week, closing above its long-term average. The gain was broad-based with all subindices rising.

Current finances were up 6.9 per cent while future finances gained 5.9 per cent. Both financial-condition indices remain above their long term averages.

Current economic conditions rose by 3.5 per cent, while future economic condition jumped 5.7 per cent. Despite the jump, both the subindices remain below their long-term averages.

A 7.1 per cent jump in ‘time to buy a major household item’ was encouraging after the drop to a 10-year low last week, although the index remains well below its long run average.

Inflation expectations were unchanged at 4.1 per cent.

“Building on a modest gain in the previous week, confidence bounced a strong 4.2 per cent last week,” ANZ Senior Economist Felicity Emmett said.

“This jump came despite ongoing geopolitical tensions and less than encouraging domestic data prints, suggesting the possibility that the early signs of recovery in the housing sector and expectations of further easing by Reserve Bank of Australia may be supporting consumer sentiment.”

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