The ANZ-Roy Morgan consumer confidence index has given us a great insight into the impact of the Government’s budget since the leaks started in late April.
Initially horrified by leaks and then by actual Budget measures, consumer confidence tanked, at one stage down 14% in four weeks.
Over the last three weeks however, confidence is back with this week’s release up another 2.4% in the week ending Saturday July 27. That’s a rise of more than 10% over the past three weeks which has taken the index back above where it was in April and, crucially for economic growth, above the long run average.
That’s great news and ANZ chief economist Warren Hogan said this in a note accompanying the releases:
“The good news is that the headline impact of the Budget appears to be temporary and the more enduring features of the economy, such as rising share and house prices, job creation and a stable world economy are now driving consumer attitudes to spending and finances.”