Consumer confidence: consolidation continues

ANZ-Roy Morgan Australian Consumer Confidence rose by 0.8% last week, reversing the fall of 0.7% in the previous week. All the sub-indices were positive other than the future financial situation.

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ANZ’S HEAD OF AUSTRALIAN ECONOMICS, DAVID PLANK, COMMENTED

“Confidence rose slightly last week, more than reversing the previous week’s fall and broadly consolidating around the current level over September. Overall confidence remains above the long-run average. Importantly, consumers’ perception of the current financial situation registered a third consecutive weekly gain and is at its highest level since early 2018. Consumer resilience in the face of the weaker housing market and, more recently, the rise in petrol prices is encouraging.  

There are a number of domestic events that could impact consumer sentiment over the next few weeks, ranging from this week’s RBA statement and news on retail sales to labour market data later in October. On balance we are constructive on the data flow, which should broadly support consumer confidence though we are mindful that rising petrol prices in particular could negatively impact sentiment - even if this does not seem to be the case in recent weeks.”

Please see the attached document for further details.