Consumer confidence: sentiment inches higher

• ANZ-Roy Morgan Australian Consumer Confidence was up a notch last week, rising 0.7% and partially reversing last week’s drop.
• Financial conditions subindices were negative, with current financial conditions and future financial conditions falling by 0.5% and 3%, respectively. The indices were down in the previous reading too.
• Economic conditions readings were mixed, with current economic conditions posting a strong rise of 5%, while future economic conditions took a slight fall of 0.8%.
• The ‘time to buy a household item’ sub-index was up by 2.6%, its second straight gain. Four-week moving average inflation expectations again fell by 0.1 ppt to 4.2 %; this was the third consecutive fall.

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ANZ’s Head of Australian Economics, David Plank, commented:

“Consumer sentiment was up a touch last week. Lower petrol prices may have played a role in supporting sentiment, with the four week moving average for inflation expectations dropping to its lowest level since late July. Consumer confidence is well above its long-run average, a strong show of resilience in the face of the recent equity volatility and the spate of negative news

surrounding house prices.”

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