Australian consumer confidence continues to rise, gains 3.6% over past 4 weeks

Data released earlier today showed that ANZ-Roy Morgan Australian Consumer Confidence rose 0.5% in the week ending 22 May. Consumer confidence added to recent gains, was up for the 4th consecutive week. Consumer confidence is now 3.6% higher over the past four weeks and 2.6% above its long run average.

Details showed that consumers were more optimistic about their finances with the indicator on ‘finances in the next 12 months’ bouncing 3.4% last week and ‘finances compared to a year ago’ up 1.4%. In contrast, consumers were a little less optimistic about their views on the economy. The subindex on ‘economy in the 12 months’ was down slightly and ‘economic conditions in the next 5 years’ fell 2.2%

The lift in confidence was underpinned by several factors including last week’s jobs report (which confirmed healthy conditions in the labour market), strong auction clearance rates, the positive impact from the RBA rate cut three weeks ago, and ongoing gains in equity markets since early April.

"Interestingly the current election campaign does not appear to be unnerving consumers despite the fact that the polls remain close. With another five weeks left in the election campaign, confidence remains vulnerable to any key developments.” notes Jo Masters, Senior economist at ANZ.