Consumer confidence increased 0.8 points last week to 84.9 points. The four-week moving average lifted 0.6 points to 83.6 points.
‘Weekly inflation expectations’ rose 0.1 percentage point to 4.9 per cent while the four-week moving average was steady at 4.7 per cent.
‘Current financial conditions’ (over the last year) declined 0.5 points, while ‘future financial conditions’ (next 12 months) were steady.
‘Short-term economic confidence'(next 12 months) rose 2.7 points and ‘medium-term economic confidence’ (next five years) increased by 3.0 points.
The ‘time to buy a major household item’ subindex eased 1.5 points.
“Last week, Consumer Confidence increased 0.8 points, taking the series to its highest level since January 2023,” ANZ Economist, Madeline Dunk said.
“Confidence is sitting just below 85 points, a ceiling it has been unable to break through for 19 months.
“In the 1990s recession, confidence stayed below 85 points for nine months. This week’s rise in confidence was driven by an improvement in household confidence in the economic outlook.
“Confidence about the next 12 months rose 2.7 points and confidence about the next five years lifted 3.0 points. Both were at
their highest levels since Q1 this year. This may be related to last week’s stronger-than-expected labour market data, which showed employment had increased by more than 143,000 in three months, with participation at a record high. This may be easing fear of job losses.
“We expect the labour market to remain resilient and see only a modest lift in the unemployment rate to 4.4 per cent.”
