Consumer confidence stabilises

Consumer confidence appears to be consolidating just below its long-run average, with the headline index declining a modest 0.6 per cent last week after a gain of 0.8 per cent the prior week.

The softness came on the tempered assessment of ‘financial conditions’, while confidence in ‘economic conditions’ bounced back after weakness in the week before.

‘Current financial conditions’ deteriorated 3.5 per cent, while ‘future financial conditions’ weakened 2.1 per cent. ‘Current economic conditions’ improved 1.7 per cent and ‘future economic conditions’ inched up 0.4 per cent.

‘Time to buy a major household item’ was up a modest 0.3 per cent. The four-week moving average for inflation expectations was steady at 3.7 per cent.

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"Consumer confidence is consolidating close to its long-run average," ANZ Head of Australian Economics David Plank said. "This solidifies the recovery from 2020."

"Any meaningful breakout from here on will have to be on back of strong news or developments. The vaccine rollout in Australia could be the next big trigger, with a successful program possibly propelling sentiment much higher."

"Of course, difficulties in providing vaccine coverage could have the opposite effect."

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