Australia consumer confidence rises for third straight week on improved economic optimism

Consumer confidence in Australia rose for the third straight week following improved optimism over the near as well as long term economic condition outlook of the country.

ANZ-Roy Morgan Australian Consumer Confidence edged up 0.3 percent to 118.2 this week after a solid 3.2 percent rise the previous week. The sub-indices were mixed. Economic conditions continued to improve after the sharp bounce last week. However, financial conditions fell slightly.

Households’ views on economic conditions over the next 12 months improved 1.2 percent, while views towards economic conditions over the next 5 years rose a solid 3.5 percent. Further, households’ views towards their finances compared to a year ago edged down 0.8 percent this week after a 3.0 percent rise the previous week.

Meanwhile, households’ views towards their future finances slipped 1.2 percent. Both sub-indices remain well above their long-run averages. Household views on whether ‘now is a good time to buy a household item’ fell 0.7 percent.

"It is encouraging to see ANZ-Roy Morgan Australian Consumer Confidence steady in the face of the surprise US election outcome. This is in contrast to Brexit, where consumer confidence fell 1.7 percent in the week following that outcome. This likely reflects the fact that financial markets settled after Trump’s acceptance speech, with many markets reversing earlier losses and volatility subsiding rapidly," said Jo Masters, Senior Economist, ANZ.