Consumer confidence back on track

Consumer confidence resumed its climb last week after pausing the week before. Most subindices rose; the exception was ‘future economic conditions.’

‘Current finances’ gained 0.5 per cent, its third straight weekly gain; while ‘future finances’ gained 1.4 per cent. Economic conditions were mixed, with ‘current economic conditions’ gaining 2.6 per cent, while ‘future economic conditions’ declined by 2.6 per cent.

‘Time to buy a household item’ rose by 1.3 per cent, compared to a decline of 5.7 per cent in the previous reading. The four-week moving average for ‘inflation expectations’ was stable at 3.2 per cent.

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"Confidence resumed its climb last week, with a modest gain," ANZ Head of Australian Economics David Plank said.

"Confidence in future financial conditions is now back to the early March level, which is a solid turnaround given the impact the pandemic lockdowns have had on employment and wages."

"The contrast we expect to see between the May labour market and retail sales data may confuse the picture somewhat, but the continued easing in the lockdowns seems likely to be a positive force for sentiment for now."

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