Australian consumer confidence has continued its upward trend, reaching its highest level since early March as households report improving views of their finances and the economic outlook.
The latest ANZ-Roy Morgan Australian Consumer Confidence Index rose 3.1 points to 75.9 in the week ending 28 June, while the four-week moving average increased to 72.6. Confidence has now risen 17.1 points since its recent low of 58.8 in late March.
The improvement was broad-based. Households reported stronger confidence in both current and future financial conditions, while confidence in the economy over the next 12 months and the next five years also increased. Meanwhile, weekly inflation expectations eased slightly to 5.6%.
The only measure to decline was the ‘time to buy a major household item’ sub-index, which fell 3.5 points.
ANZ Economist Madeline Dunk said:
ANZ-Roy Morgan Australian Consumer Confidence recorded its second consecutive weekly rise, taking the series to its highest level since early March. Confidence has been trending higher, rising 17.1pts from its recent low of 58.8pts in late March.
The rise in confidence was broad-based, with households feeling more positive about their financial conditions and the economic outlook. Confidence in the 12 months outlook for the economy and households’ personal financial situation lifted to the highest level since February.
The pick-up may be linked to the decline in the unemployment rate seen in the May Labour Force Survey released last week. It is also possible that the trend lower in petrol prices is supporting confidence and contributing to the decline in inflation expectations.”
