Consumer confidence continued to scale 2020 highs. The overall index rose 1.7 per cent, matching the prior week’s gain, with most of the subindices registering improvement.
‘Current financial conditions’ surged 6.4 per cent, while ‘future financial conditions’ grew 0.5 per cent. ‘Current economic conditions’ improved by 2.9 per cent, while ‘future economic conditions’ was unchanged from the previous week.
‘Time to buy a major household item’ inched up 0.3 per cent. The four-week moving average of ‘inflation expectations’ rose to 3.6 per cent, though weekly inflation expectations softened to 3.6 per cent from 3.8 per cent the week prior.
“It was yet another upbeat result in the latest survey, with consumer confidence reaching new 2020 highs,” ANZ Head of Australian Economics, David Plank said.
“Most subindices are now back at or even higher than the pre-pandemic level, with the confidence in future economic conditions at an 18-month high.”
“The exception is current financial conditions, for which sentiment is close to 10 per cent lower than mid-March and still below the neutral level of 100 (if only just). Despite this exception, the rise in confidence bodes well for the holiday season.”
“Last week we noted the sharp jump in inflation expectations. These have pulled back a bit in this week’s survey but are still elevated enough to push the four-week moving average to its highest level since late April. This is still some way below the 4 per cent-plus level for expected inflation that was typical prior to the pandemic.”
