Consumer confidence has bounced back from its previous decline, rising 2.2 per cent last week to 118.5, according to data from ANZ-Roy Morgan Australian Consumer Confidence.
This increase in consumer confidence was attributed to households being “particularly optimistic” about near-term financial conditions.
The ANZ-Roy Morgan Australian data also showed:
- “Views towards current economic conditions edged up 0.3 per cent. This subindex remains well above its long-term average. Sentiment around future conditions rose 1.2 per cent, undoing much of the 1.9 per cent decline in the previous week.
- Household sentiment towards current and future financial conditions improved materially last week (6.4 per cent and 2.6 per cent, respectively), following consecutive falls in the two previous weeks.
- The ‘time to buy a household item’ subindex rose 0.8 per cent to 134.2. Inflation expectations eased to 4.5 per cent on a four-week moving average basis, with the latest reading at 4.1 per cent.”
ANZ’s Senior Economist, Felicity Emmett, said that this consumer confidence rebound was “encouraging”.
“The bounce follows last week’s report showing business conditions at a new record high and suggests that both the business and household communities remain optimistic about the outlook.
“Of note is the improvement in households’ perceptions of their finances, which points to some resilience in consumer spending, despite the numerous headwinds households face.
“Overall confidence seems to have stabilised after trending down in February.
“The jobs report out later this week has the potential to impact confidence in the near term. Another solid report with a tick down in the unemployment rate (in line with our expectations) is likely to support confidence, over the coming weeks.
“That said, confidence is vulnerable to additional bouts of financial market volatility,” she said.