Australia weekly consumer confidence hits 16-week high on upbeat views on future economic conditions

Australia’s ANZ-Roy Morgan weekly consumer confidence rose 1.4 percent last week to 116.4, its highest level in 16 weeks. The details were broadly positive, with three out of five sub-indices posting gains, while the other two showed only slight falls.

Households’ views towards both current and future economic conditions were up 2.9 percent and 2.0 percent respectively, following a solid 3.5 percent and 7.0 percent increase previously. Both sub-indices sit at multi-week highs.

Household views toward the state of their current finances slipped for the third consecutive week (-0.4 percent). Even so, current conditions remain well above their long-term average. Encouragingly, their views towards future conditions jumped 3.0 percent last week, the first increase in four weeks. Meanwhile, inflation expectations remained unchanged at 4.5 percent in four-week moving average terms.

"The outlook for employment in the near term remains positive, consistent with elevated business conditions and leading labor market indicators, and this should continue to broadly support confidence. However, last week’s weaker-than-expected wage growth is likely to weigh on consumers, particularly in the current environment of moderating house price growth and high household debt. Together, these factors are likely to cap the extent of improvement in sentiment," said Felicity Emmett, Senior Economist, ANZ Research.

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