Australian weekly consumer confidence index rises

Australian weekly consumer sentiment rose. The ANZ-Roy Morgan Australian consumer confidence index rose 0.3 percent last week. The financial and economic conditions subcomponents came in positive, suggesting the detail was better than the headline implied.

Current finances rose 2.8 percent, while future financial conditions rose 0.3 percent. Both the indices are above their respective long-term average. The economic subindices also came in positive, with current economic conditions rising 3.4 percent and future economic conditions rising 1 percent.

The ‘Time to buy a major household item’ was the only subindex that dropped, falling 4.4 percent. The four-week moving average for inflation expectations came in flat at 4 percent, though weekly inflation expectations rose for the third straight week.

Consumer sentiment rose marginally last week following two straight falls, with the detail slightly more positive with all the financial and economic conditions readings rising.

“Of particular note, given the upcoming RBA decision, was the stability of inflation expectations at 4% for the four-week moving average. This has printed at 4% for three weeks in a row and is up from the low of 3.8% seen in mid-June. This will provide comfort to the RBA that the slide in consumer inflation expectations has been arrested”, commented ANZ Head of Australian Economics, David Plank.

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