Consumer confidence strengthens

Consumer confidence rose 1.2 per cent, more than reversing the previous week’s loss and continuing the index’s recent sawtooth pattern.

The gains have been a little more than the losses so the index reached its 2020 high last week.

‘Current finances’ gained 2 per cent, while ‘future finances’ fell marginally by 0.1 per cent. ‘Current economic conditions’ registered a healthy gain of 6.5 per cent compared to a fall of 4.1 per cent seen in the previous week, while ‘future economic conditions’ were flat.

‘Time to buy a major household item’ fell 0.9 per cent, adding to the loss of 5 per cent seen in the previous reading. The four-week moving average for ‘inflation expectations’ fell by 0.1 percetnage point to 4.0 per cent, while the weekly reading remained stable.

“The ANZ Roy-Morgan Australian Consumer Confidence index has risen to it highest level in 2020, with sentiment possibly buoyed by the continued gains in asset prices,” ANZ Head of Australian Economics David Plank said.

“The fact the coronavirus hasn’t become established in Australia might be a contributing factor, although the measures taken by the government to help ensure this remains the case will have economic consequences.”

“This week the key domestic influences on sentiment will be wage and employment data. We aren’t expecting the news to be flash, which may see confidence dip over the coming week and so continue the up and down behaviour seen in recent weeks.”

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