Household financial confidence hits five-month high
Consumer confidence in Australia edged up by 0.5 points to 83.1 points last week, with the four-week moving average also increasing by 0.5 points to 83.2 points, according to the latest ANZ-Roy Morgan Australian Consumer Confidence report.
Weekly inflation expectations fell by 0.2 percentage points to 4.6%, with the four-week moving average decreasing by 0.1 percentage points to 4.8%.
In contrast, assessments of current financial conditions over the past year dropped by 0.6 points, while expectations for future financial conditions over the next 12 months rose by three points.
Short-term economic confidence, reflecting expectations for the next 12 months, increased by 1.6 points. However, medium-term economic confidence, covering the next five years, declined by 0.3 points. The sub-index measuring the “time to buy a major household item” fell by 1.4 points.
“ANZ-Roy Morgan Australian Consumer Confidence has moved within a tight range over the past four weeks, with the series retaining most of the gains seen in late July and early August,” said ANZ economist Madeline Dunk (pictured above).
“Households’ confidence in their future financial situation jumped to a five-month high last week and is now back in ‘positive’ territory. This is the only subindex currently sitting above 100 points. Inflation expectations also eased 0.2 percentage points to 4.6%, its lowest reading since late 2021.
“The shift in these indicators may be linked to last week’s monthly inflation data, which showed a fall in both headline and trimmed mean inflation. After accelerating earlier in 2024, inflation appears to be back on the path to target.”
Any thoughts on this story? Share them with us by leaving a comment in the discussion box at the bottom of the page.