Australian consumer confidence is bouncing back according to the latest research by ANZ-Roy Morgan.
The research group reported this week a 2.6 per cent rise, indicating recovery from the dive seen during the Wentworth by-election.
ANZ-Roy Morgan said that performance is positive in financial and economic conditions.
“Consumer confidence registered its third consecutive gain after the sharp fall recorded during the Wentworth by-election weekend. In fact, confidence has more than regained that fall and is at its highest level since late July,” ANZ’s head of Australian Economics, David Plank, commented.
“Last week’s RBA Statement on Monetary Policy was quite upbeat on the Australian economy. At the same time, the Bank’s message of no near-term hikes in the interest rate was reassuring for households. Sentiment might have received boosts from the recent easing in petrol prices and the rebound in equity markets.
“There is some important data this week that may impact household sentiment, not least Q3 wage data. We think this will be boosted by the rise in the minimum wage and the finalising of some enterprise agreements.”
ANZ-Roy Morgan further reported that Australian households’ perceptions of current financial conditions and future financial situation rose by 3.9 per cent and 2.2 per cent. It is close to the highest level seen since the GFC. Also, current and future economic conditions leaped by 7 per cent and 4.5 per cent respectively.
Meanwhile, the ‘time to buy a household item’ sub-index declined by 3.1 per cent, only partial reversing the prior week’s sharp gain of more than 9 per cent. Four-week moving average inflation fell by 0.1 ppt to 4.4 per cent.