Australian ANZ-Roy Morgan consumer confidence strongly recovers last week on positive financial conditions

Australia’s ANZ-Roy Morgan index made a strong recovery last week, rising 2.8 percent after the prior week’s 1.1 percent drop. Financial conditions were positive, with current finances up 1.6 percent, while future finances rose for the fourth consecutive week in gaining 2.6 percent.

Economic conditions finally recovered with substantial gains compared to weak performance for the last few weeks. Current economic conditions gained 2.6 percent, while future finances were up significantly by 6.8 percent.

The rise in future economic conditions is pleasing, as this particular sub-index has been in a downtrend for the last four weeks.

The 'Time to buy a household item' also strengthened, increasing 1.3 percent. The four-week moving average of inflation expectations declined by 0.1ppt to 4.0 percent.

"Sentiment recovered last week, possibly in part on the back of the RBA Governor’s comments about a “gentle” upturn in the economy. Reasonable CPI data and the lift in building approvals may have also contributed to the lift in sentiment. The jump in future economic conditions was notable, as this index has been acting as a major drag for the whole index. Better global news, reflected in higher global share prices, likely also impacted. The weekly inflation expectations sub-index remained at its recent low and the RBA is likely to be pay some attention to that," said David Plank, ANZ’s Head of Australian Economics.