ANZ-Roy Morgan Australian Consumer Confidence bounced 1.5 per cent last week to reach 118 – more than reversing the 1.3 per cent fall last week.
Households’ perception of current financial conditions improved 3.7 per cent last week. This partially reversed the 4.8 per cent fall in the previous week. Meanwhile, sentiment towards future financial conditions levelled out (down 0.4 per cent) following three straight weekly rises.
Households were slightly less optimistic about current economic conditions (down 1.2 per cent). However, sentiment towards future conditions improved 3.3 per cent last week.
The ‘time to buy a household item’ sub-index reversed its 2.3 per cent fall from the previous week to remain unchanged over a two-week period. Four-week moving average inflation expectations were unchanged at 4.3 per cent.
Consumer confidence ‘well above average’
ANZ Senior Economist Jo Masters said: “Confidence bounced last week, probably buoyed by the solid jobs report out on Thursday, which showed 44,000 new jobs were created in July.
“Domestic data seem to have outweighed ongoing global-trade concerns. But geopolitical events are continuing to evolve and may come back in focus given the light data calendar this week.
“Encouragingly, views toward current financial conditions largely recovered from their sharp fall the previous week. We also think it noteworthy that, after falling quite sharply over the past two months, the ‘time to buy a household item’ sub-index appears to have stabilised, albeit around its lowest level in a year.
“We’re closely watching this sub-index, as it provides some insight into how falling house prices may be affecting household spending.
“Overall, while confidence has fallen from its high in June, it remains well above average levels. And, in four-week moving average terms, confidence appears to be past its low.”
