Consumer confidence increases further

• Confidence continues its rise, gaining 1.2 per cent last week. With the exception of ‘time to buy a household item’, which fell 2.9 per cent, all the sub-indices were positive.

• Current financial conditions rose by 1.2 per cent, while future financial conditions were up 0.8 per cent. These two indices have risen for three consecutive weeks. The measure of current financial conditions is its highest since early February.

• Current economic conditions rose 3.0 per cent while future economic conditions were up 4.5 per cent. 

• The four-week moving average for inflation expectations was stable at 4.1 per cent.

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“Consumers are upbeat about both their personal outlook and the economy in general," ANZ Head of Australian Economics, David Plank said.

"The prospect of lower interest rates and what appears to be a major sentiment shift on the housing market are likely drivers of the positive outlook. The gain comes despite negative developments in the global economy."

"While the four-week moving average for inflation expectations was unchanged at 4.1 per cent, the weekly reading dropped back under 4 per cent."

"This is the fifth sub-4 per cent reading since early March, an unprecedented run of low results for this survey."

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