Consumer Confidence: Renters Drive Post-Budget Lift

• Consumer confidence: renters drive post-Budget lift

• Consumer confidence increased 1.8pts to 82pts last week. The four-week moving average rose 0.4pts to 81pts.

• ‘Weekly inflation expectations’ was unchanged at 4.8%, and the four-week moving average was unchanged at5.0%.

• ‘Current financial conditions’ (over last year) increased slightly by 0.3pts and ‘future financial conditions’ (next 12 months) rose 0.7pts.

• ‘Short term economic confidence’ (next 12 months) rose 2.6pts and ‘medium term economic confidence’ (next five years) increased by 1.3pt.

• The ‘time to buy a major household item’ subindex rose 4.4pts reversing the previous week’s decline

ANZ Economist, Madeline Dunk said: “ANZ-Roy Morgan Australian Consumer Confidence rose 1.8pts last week, but the series remains at very low levels. The lift was driven by a 3.9pt rise in confidence amongst renters. The boost could be linked to measures announced in the Budget such as the 10% rise in Commonwealth Rent Assistance.

“Across the other housing cohorts, there was a small lift in confidence amongst households paying off their homes, while confidence declined for those who own their homes outright. The ‘future financial conditions’ subindex rose above its neutral level of 100 for the first time in seven weeks. Meanwhile, inflation expectations remained stable at their 2024 low of 4.8%.”

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