Consumer confidence jumps

Confidence jumped by 4 per cent in one of the largest increases in a year. On an absolute level, the index is at a two-month high.

Financial conditions indices were mixed with current finances down 2.2 per cent, while future financial conditions rose 1.0 per cent.

Economic conditions were up by a healthy margin. Current economic conditions gained 13.3 per cent 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 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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“Confidence was up by a healthy margin on the back of a strong performance by the economic conditions sub-indices," ANZ Head of Australian Economics, David Plank said.

"The strength may have reflected better global sentiment arising out of the G20 summit in Osaka and evidence house prices are stabilising in Sydney and Melbourne."

"The further gain in the ‘time to buy’ index suggests sentiment toward housing is improving. 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.”

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