August 2, 2022
Consumer confidence modest uptrend continues
Consumer confidence gained 2.1 per cent last week, its third consecutive weekly increase. Among the mainland states, confidence improved in Queensland and SA, while it dropped slightly in NSW, Victoria, and WA.
• ‘Weekly inflation expectations’ dropped 0.5ppt to 5.5 per cent, its lowest level since late May. Its four-week moving average fell 0.1ppt to 5.8 per cent.
• Four of the five confidence subindices registered gains. ‘Current financial conditions’ rose a touch by 0.5 per cent, while ‘future financial conditions’ increased 5.3 per cent.
• ‘Current economic conditions’ gained 1 per cent. ‘Future economic conditions’ rebounded 3.6 per cent almost reversing the 3.9 per cent fall the week before.
• ‘Time to buy a major household item’ decreased 1.5 per cent, bucking the overall trend.
"Consumer confidence rose 2.1 per cent last week, despite news that headline inflation exceeded 6 per cent in the year to June." ANZ Head of Australian Economics, David Plank said.
"The sharp fall in petrol prices over the past three weeks may have been more important for sentiment. The drop likely explains why household inflation expectations fell 0.5ppt to 5.5 per cent. The only confidence subindex that decreased was ‘good time to buy a major household item’ – ongoing weakness in the housing market and pressure on household budgets being likely reasons.
Despite the gain in in the past three weeks, sentiment remains at a very low level and vulnerable to more tightening from the RBA."
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