Consumer confidence hits 11-month high

Consumer confidence increased three points in the week to January 7th, hitting an 11-month high. The four-week moving average was up 2.1 points.

Among the mainland states, confidence rose in New South Wales, Victoria, and Queensland but fell in South Australia and Western Australia.

‘Weekly inflation expectations’ dropped 0.1 percentage point to 5.2 per cent, while the four-week moving average was unchanged at 5.3 per cent.

Four of the five subindices increased. ‘Current financial conditions’ fell 1.6 points while ‘future financial conditions’ rose 0.7 points.

‘Current economic conditions’ lifted 2.1 points to its highest level since late May 2022. ‘Future economic conditions’ increased 4.9 points to its highest level since late January 2023.

The ‘time to buy a major household item’ subindex jumped 8.7 points to its highest level since the middle of January in 2023.

{CF_IMAGE}

"The ANZ-Roy Morgan Australian Consumer Confidence started the year at its highest level since late January 2023," ANZ Senior Economist Adelaide Timbrell said.

"While elevated consumer confidence is typical for early January, this represented the third-largest January jump (compared to the prior year’s fourth-quarter average) in the last 15 years.

"Renter confidence is trending sideways, but there have been sharp increases in the four-week average confidence of outright homeowners and indebted homeowners, likely due to rising housing prices and more stable rates.

"We expect consumer confidence to lift meaningfully closer to the long-term average once inflation shows further signs of declining."

Download report