Australia's consumer confidence ends three straight weeks of falls, rises 1.6 pct in the week ending 26 March

Australia ANZ-Roy Morgan consumer confidence rose 1.6 percent in the week ending  26 March, ending three straight weeks of falls. However, the four-week average continued to fall and is now back to early 2016 levels and close to its long-run average.

Details of the report showed the pickup in confidence was broad-based with four out five sub-indices posting gains. Households’ views of the 12-month economic outlook rose 2.7 percent last week, after a 3.3 percent fall the previous week. The current finances index fell slightly (-0.9 percent) last week, while the future finances index rose a solid 3.0 percent.

Inflation expectations ticked up partly reversing the previous week’s sharp fall. The four-week average is now at 4.4 percent, well above the low of 3.8 percent seen in October last year. The ‘good time to buy a household item’ sub-index rose 0.5 percent, building on the 1.7 percent gain over the previous two weeks.

“The broad-based improvement in confidence last week is encouraging, particularly given the fall in domestic equity prices early in the week and uncertainty surrounding US policy. The evolution of consumer confidence will be important to gauge the prospects for consumption growth,” said Felicity Emmett, ANZ Research.