There is some good news for retailers with just one month to go before Christmas. ANZ Chief Economist Warren Hogan said today a note accompanying the release of the ANZ – Roy Morgan Weekly Consumer Confidence index that “alongside low interest rates and rising house prices, this should support consumer confidence and retail spending as we head into the Christmas season.”
Driving his more upbeat tone is an increase in labour demand and the fact that confidence rose 1.2% to 114.3 in the week ending 23 November. According to the ANZ this is good news because “looking through the weekly volatility, confidence is gently drifting higher.”
Key to the expectation is also the drought that household spending has gone through recently when compared to the usual drivers such as perceptions of household finances compared to a year ago.
The ANZ expects the gap to close and spending to pick up in the months ahead.