Consumer confidence rose 1.7 per cent last week after a 4.9 per cent jump the week before. Confidence is now at its highest since early June, but remains well below the neutral level of 100.
• ‘Weekly inflation expectations’ dropped 0.3ppt to 5.5 per cent, while the fourweek moving average decreased 0.1ppt to 5.6 per cent.
• Four of the five subindices improved. ‘Current financial conditions’ fell 3 per cent after a 5.4 per cent rise the week before. ‘Future financial conditions’ rose 1.4 per cent.
• ‘Current economic conditions’ jumped 8.4 per cent, to its highest level since the of end May. ‘Future economic conditions’ were practically unchanged with an increase of 0.1 per cent.
• ‘Time to buy a major household item’ rose 2.4 per cent after three straight weeks of decline.
“Consumer confidence rose for a second straight week as it gained 1.7 per cent. The unemployment rate dropping to 3.4 per cent in July might have helped boost sentiment, though the news on wages, especially in real terms, was disappointing. Consistent with this, confidence is still exceptionally low; but consumers are modestly optimistic about their future financial situation despite the prospect of further increases in interest rates.” ANZ Head of Australian Economics, David Plank said.
“Across the major states, confidence improved in NSW, Victoria, Queensland and SA, while it fell in WA ‒ although confidence is higher in WA than any other state. The increase in overall sentiment was mainly driven by a second consecutive jump in the subindex that captures ‘current economic conditions’. Confidence in the nearterm economic outlook remains exceptionally weak, however.”
