ANZ-Roy Morgan Consumer Confidence rose 1.9 per cent last week, building on the 0.3 per cent gain in the previous week. All the subindices rose except ‘current finances’.
Current finances declined 0.9 per cent after a 2.8 per cent jump in the previous week. Future finances gained 1.2 per cent.
Economic conditions subindices were more encouraging, with current economic conditions up by 5.8 per cent and future economic conditions flat.
The ‘time to buy a major household item’ index gained 3.5 per cent after losing 4.4 per cent previously. The four-week moving average for inflation expectations was up 0.1 percentage point to to 4.1 per cent.
“Confidence gained for the second straight week and is now well above its long-run average,” ANZ Head of Australian Economics David Plank said.
“The federal government’s tax refunds for low- and middle-income earners look to be boosting sentiment, particularly in the case of the ‘time to buy a household item’ subindex.”
“RBA Governor Lowe’s statement that interest rates would remain low for an extended period is also likely to have helped support confidence, pushing equities to 12-year high.”
