Consumer confidence increased 1.3 per cent last week, reaching its highest level since early June. Across the major states confidence increased in Victoria, Queensland, SA and WA, but was flat in NSW.
• ‘Weekly inflation expectations’ rose 0.1ppt to 5.4 per cent, though its four-week moving average was down 0.1ppt to 5.5 per cent.
• Four of the five confidence subindices increased. ‘Current financial conditions’ rose 1.5 per cent. ‘Future financial conditions’ fell for a second week in a row by 0.5 per cent, however it remains above the neutral level of 100.
• Both ‘current’ and ‘future economic conditions’ increased for a fourth straight week, by 1.1 per cent and 2.6 per cent respectively. They’re both at their highest level since late May.
• ‘Time to buy a major household item’ rose 2.4 per cent after a 5.5 per cent drop the week before.
“Consumer confidence rose 1.3 per cent last week, to its highest level since June despite a widely expected interest rate increase by the RBA in its meeting today.” ANZ Head of Australian Economics, David Plank said.
“Household inflation expectations rose 0.1ppt over the week to 5.4 per cent.
The confidence data by housing status shows that for people renting a home, confidence jumped last week and is now at a higher level than it was before the RBA started raising interest rates. However, for people paying off a mortgage and for those who own their home confidence is sharply lower by 19 per cent and 13 per cent respectively since the RBA’s first rate hike in May. The recovery in consumer confidence is encouraging, but it remains in very negative territory despite the lowest unemployment rate in decades.”
