Consumer confidence rises for third week

Consumer confidence has strengthened for a third-straight week, rising 7.7 per cent. The gain was broadly based, except ‘current finances’ which declined 2.6 per cent.

‘Future financial conditions’ gained 6.6 per cent, in contrast to the fall in ‘current finances’. The subindex has been in a positive territory for the last four weeks.

‘Current economic conditions’ gained 9.6 per cent, for the third week straight, while ‘future economic conditions’ rose 6.7 per cent.

‘Time to buy a major household item’ saw a big gain of 21.5 per cent, while the four-week moving average for ‘inflation expectations’ fell 0.2 percentage poimt to 3.8 per cent. The weekly reading dipped to 3.1 per cent, the lowest in the history of the survey.

“The flattening in the pandemic curve and the recovery in equity markets may be helping to lift consumer confidence,” ANZ Head of Australian Economics David Plank said.

“Better-than-expected news on the labour market may also have boosted sentiment. Confidence is now close to 30 per cent above

the historic low reached on the last weekend of March.”

“While the recovery has been solid, sentiment is still well below average. Inflation expectations have dropped, with the weekly reading of 3.1 per cent the lowest since the survey began measuring inflation expectations in 2010.”

“The dramatic drop in petrol prices over recent weeks may be a major contributor to the fall.”

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