Consumer confidence rises

Growing optimism drove one of the largest increases in consumer confidence in a year, according to the latest ANZ Roy Morgan survey.

Consumer confidence jumped by 4 per cent with financial conditions indices showing mixed results. Consumers’ views about their current finances show a 2.2 per cent decrease, while future financial conditions show a 1.0 per cent increase.

“On an absolute level, the index is at a two-month high,” Roy Morgan’s report indicated.

David Plank, ANZ head of Australian Economics, said confidence was up by a healthy margin on the back of a strong performance by the economic conditions sub-indices.

“The strength may have reflected better global sentiment arising out of the G20 summit in Osaka and evidence that house prices are stabilising in Sydney and Melbourne,” Plank said.

Economic conditions were up by a healthy margin. Current economic conditions showed a 13.3 per cent rise after falling for three consecutive weeks.

Future economic conditions also showed strength, gaining 7.0 per cent, a rise that came after four straight weekly losses.

The ‘Time to buy a major household item’ was up 3.2 per cent, taking it close to the levels seen last July. 

“The further gain in the “time to buy” index suggests sentiment toward housing is improving,” Plank said.

“The RBA decision on the cash rate may impact sentiment this week, though as we saw in June the immediate impact of a rate cut is not always positive.”

The four-week moving average for inflation expectations was stable at 3.9 per cent, although the weekly reading fell to 3.7 per cent.

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