Consumer confidence: bounce

• Consumer confidence rose 2.6pts last week to 83.9pts. The four-week moving average rose 1.4pts to 83.2pts.

• ‘Weekly inflation expectations’ were steady at 5.1% while the four-week moving average was unchanged at 5.1%.

• ‘Current financial conditions’ (over last year) increased7.1pts, while‘ future financial conditions’ (next 12 months) lifted 3.1pts.

• ‘Short-term economic confidence’ (next 12 months) rose 0.3pts while ‘medium-term economic confidence’ (next five years) was up 1.2pts.

• The ‘time to buy a major household item’ subindex increased 1.3pts.

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ANZ Economist, Madeline Dunk said: “ANZ-Roy Morgan Australian Consumer Confidence rose 2.6pts last week, pushing the four-week moving average to a six-month high of 83.2pts. All of the subindices improved, but there was a particularly big jump in household’s confidence in their current financial conditions. The subindex lifted 7.1pts, recording its largest weekly rise since late last year. This takes the four-week moving average to its highest level since March 2023.

The rise may be linked to the RBA’s decision to keep rates on hold last week. It is also possible that households are starting to feel the positive impact of the Stage 3 tax cuts on their finances. Notably, the four-week moving average for the ‘time to buy a major household item’ subindex recorded its second highest reading since February 2023.”

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