Australia ANZ-Roy Morgan weekly consumer confidence bounces on improvement in views over current financial conditions

Australia’s ANZ-Roy Morgan weekly consumer confidence bounced 2.1 percent last week, following a sharp 3.5 percent decline in the prior week. The details were positive, with all but one sub-index posting gains. Households’ perception of current financial conditions improved 1.2 percent last week, largely. recovering from the 1.3 percent fall in the previous week.

Sentiment towards future financial conditions bounced a solid 3.1 percent, partially reversing the 7.6 percent tumble in the week prior. Consumers’ were also more optimistic about current economic conditions – their assessment improved 2.9 percent last week, ending its streak of weekly declines.

Of particular note, views towards future economic conditions jumped 6.1 percent- more than reversing the previous week’s 5.3 percent decline and bringing the sub-index to its highest value in six weeks. Going against the tide, the ‘time to buy a household item’ sub-index slipped 2.2 percent to 126.5 (vs 134.0 long term average). Four-week moving average inflation expectations were unchanged at 4.3 percent.

"The strong recovery in future economic conditions suggests that households may view the result as providing policy continuity. It is not all good news, however. Despite the tick up in headline confidence, households remain pessimistic about purchasing large household items. This sub-index has fallen sharply from its recent high in June, and now sits well below its long term average. Sluggish wage growth, high levels of debt and decreasing house prices are likely constraining sentiment in this regard," said David Plank, Head of Australian Economics, ANZ Research.