Consumer confidence rebounds

• Consumer confidence jumped 3.1 per cent last week, as the NSW government released its much anticipated “roadmap to freedom”, which sets out the plan for easing of restrictions once 70 per cent of adults in the state have been fully vaccinated.

• Four out of the five subindices made significant gains. ‘Current financial conditions’ rose 2.0 per cent, while ‘Future financial conditions’ were up 3.7 per cent.

• ‘Current economic conditions’ improved 6.8 per cent, while ‘Future economic conditions’ softened 0.6%.

• ‘Time to buy a major household item’ gained 4.2 per cent. ‘Weekly inflation expectations’ dropped 0.2ppt but remained quite elevated at 4.5 per cent. Its four-week moving also remained at 4.5 per cent.

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"Consumer confidence gained 3.1 per cent last week, driven by a huge jump of 10.6 per cent in Sydney as the NSW government released its roadmap out of lockdown. With close to 47 per cent of NSW’s adult population already fully vaccinated, this roadmap is expected to take effect by mid-October. That is, once the number reaches 70 per cent." ANZ Head of Australian Economics, David Plank said.

"Confidence increased by 6.2 per cent in Victoria, while it fell 3.2 per cent in Queensland as new cases emerged in the state last week."

"Household inflation expectations have been quite volatile in the past few weeks, rising sharply then dropping back. Our research indicates that expectations tend to follow developments in petrol prices and the headline CPI. With these appearing to have peaked, we may be at a level where expectations stabilise."

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