Consumer confidence is bouncing around at long run average, according to the latest update of the ANZ-Roy Morgan Weekly confidence index for the week ending August 31st.
Confidence fell 0.8% to 112.6 after the previous week’s 0.9% rise. But the ANZ said that “confidence remains around long-run average levels and is supportive of moderate growth in household spending in 2014”.
Moving the index around is volatility consumer perception of their financial situation compared to a year ago. This is an important sub-index because ANZ says it’s most closely correlated with consumer demand. It fell last week by 5.5% after a 11.1% surge the week before. Regardless of the volatility the ANZ says its still consistent with strengthening consumer spending.
ANZ Chief Economist Warren Hogan was fairly positive: ” Consumer confidence appears to have stabilised around long-run average levels supported by low interest rates and rising house prices. Alongside the improvement in non-mining investment intentions, it appears that the growth drivers in the non-mining sectors of the economy are broadening.”
More good economic news.