Consumer confidence jumps

Consumer confidence gained 4.6 per cent last week, one of the highest increases in the last three months. Even more encouragingly, the increase in sentiment was broad-based with all the subindices gaining.

‘Current finances’ gained 1.3 per cent, while ‘future finances’ gained 2.7 per cent and remains the only subcomponent above the neutral level of 100.

‘Current economic conditions’ continued with the momentum seen in the last week, gaining a further 13.1 per cent to be up 25 per cent over the two weeks. ‘Future economic conditions’ rose 3.9 per cent for its third straight weekly gain.

‘Time to buy a household item’ gained 6.4 per cent. ‘Inflation expectations’ declined by 0.1 per cent to 3.2 per cent (four-week moving average).

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"In an encouraging development consumer confidence built on the gains seen in the previous week, with the strongest weekly gain for some time," ANZ Head of Australian Economics David Plank said.

"The substantial decline in active cases in Melbourne and continued low numbers in Sydney have raised hopes the pandemic can be contained without a broadening of lockdowns beyond those already in place."

"Although only one subcomponent is above the neutral level of 100, the gains made in the last two weeks have bought other subcomponents closer to that point, though ‘current economic conditions’ is still 38 per cent below the neutral level."

"Confidence was up firmly across all states except Victoria and NSW, where the gains were more subdued. Sentiment is now above neutral in Perth and Adelaide."

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