Consumer confidence is back above its long-run average, according to the ANZ-Roy Morgan Weekly Confidence index released this morning. The index showed a 0.9% increase to 113.5 in the week ending Saturday the 24th of August.
This weekly index has been volatile lately as consumers reflect and react to the various budget measures and the to-ing and fro-ing in the Senate. But ANZ sees a solid sign in the sub-indices within the index which suggest that the outlook for retail consumption is improving.
“Importantly, the improvement was driven almost entirely by an 11.1% rise in household perceptions about their ‘financial situation compared to a year ago’, the subindex most closely correlated with consumer demand,” the bank said in the press release accompanying the index. “This is now above average levels (since 2001) and is an encouraging sign for consumer spending in coming months.”
Warren Hogan, ANZ’s chief economist, was really positive about the impact of the bounce in the index, saying that: “Signs that consumer confidence is bouncing back, combined with strengthening business surveys, gives us more confidence that the non-mining recovery remains on track.”
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