The ANZ is disappointed that consumer confidence has kicked on according to the note accompanying the release of the latest edition of the ANZ-Roy Morgan Consumer confidence index.
In the week up to Sunday consumer confidence fell 0.3% to 113.9. “This is a small set-back following a solid 1.2% rise in the previous week,” the ANZ said but noted also that, “looking through the weekly volatility, consumer confidence is trending modestly higher.”
The good news is that the ANZ expects lower petrol prices to support the upside “to confidence in coming weeks,” but “this may be offset to some extent if weakness in the Australian sharemarket continues.”
It’s all a bit confusing with ANZ Chief economist Warren Hogan summing it all up saying:
While consumer confidence is trending higher, the pace of improvement continues to disappoint. The lack of momentum may in part reflect sustained weakness in wages growth. As such, the fall in petrol prices should be a small positive for households as lower petrol prices boost real income which could then be used to lift discretionary spending. This may also provide some boost to confidence in coming months.