Consumer confidence consolidates

Consumer confidence rose a modest 0.8 per cent last week, consolidating recent gains. The rise came on the back of an improved assessment of ‘financial conditions’, while ‘economic conditions’ pulled back following its strong surge the week prior. Confidence is close to its long-run average.

‘Current financial conditions’ gained 3.9 per cent, while ‘future financial conditions’ improved by 3.1 per cent. ‘Current economic conditions’ weakened 2.6 per cent and ‘future economic conditions’ declined 2.4 per cent.

‘Time to buy a major household item’ increased 1.9 per cent. The four-week moving average for inflation expectations was steady at 3.7 per cent.

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"The second week of gains in consumer confidence reflects the improved assessment of personal financial conditions, consistent with the improving labour market," ANZ Head of Australian Economics David Plank said.

"The pullback in ‘economic conditions’ is somewhat of a rebalancing following its sharp surge the previous week. The headline confidence level is close to its long-term average, for the first time since late 2019. This suggests momentum in the economy remains positive."

"Weekly inflation expectations rose 0.1 percentage points to 3.8 per cent and has now effectively reversed all of fall in expectations seen during the early months of the pandemic. News of the lockdown of Perth and southwest Western Australia came too late to impact the survey."

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