Optimism about future finances grows, though caution remains around major purchases
Australian consumer confidence recorded a slight increase last week, with the ANZ-Roy Morgan Consumer Confidence Index edging up 0.1 points to 86.5 points.
The four-week moving average also improved, rising 0.8 points to 86 points.
According to the latest data, current financial conditions declined by 1.7 points, but there was a positive shift in expectations for the future.
Future financial conditions over the next 12 months climbed by 2.7 points, while short-term economic confidence increased by 1.1 points. Confidence in the medium-term economic outlook, covering the next five years, rose 0.8 points.
Inflation expectations held steady at 4.6% on a weekly basis, while the four-week moving average dipped slightly by 0.1 percentage points to 4.6%. This marks the lowest inflation expectation reading since September 2021.
Despite the overall uptick in confidence, the time to buy a major household item sub-index fell by two points, suggesting consumers remain cautious about making large purchases.Insert ANZ-Roy Morgan Four-week Average Consumer Confidence.png here
“ANZ-Roy Morgan Australian Consumer Confidence continues to slowly trend upwards,” said ANZ economist Madeline Dunk (pictured above). “The series has risen 7.5 points since early July, with the biggest gains in household confidence in current financial conditions and the short-term economic outlook. Both these measures have lifted 10.3 points since early July.
“Inflation expectations continue to ease. While the weekly figure was stable last week following the Q3 inflation data, the four-week moving average fell to 4.6%. This is the lowest reading since September 2021.”
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