- Australians are feeling more confident following the Coalition’s surprise election victory last weekend.
- The ANZ-Roy Morgan Consumer Confidence Index rose 2.1%, leaving it at above-average levels.
- All five survey components strengthened, led by solid improvements in sentiment towards the economy in the year ahead and whether now is a good time to buy a household item.
- The modest bounce in confidence may reflect that respondents surveyed on Saturday did not know the election result.
Australians are feeling more confidence following the Coalition’s surprise election victory last weekend, but the increase wasn’t substantial.
The ANZ-Roy Morgan Consumer Confidence Index rose 2.1% to 117.2 last week, leaving overall sentiment levels above the series long-run average of 113.1.
All five survey components improved, led by a large 4.1% lift in sentiment as to whether now is a good time to buy a household item.
Elsewhere, confidence towards current family finances lifted 0.5% while that looking 12 months ahead rose by a larger 1.2%. Sentiment towards the outlook for the economy looking one and five years ahead also bounced, rising 3.8% and 0.9% respectively.
David Plank, head of Australian economics at ANZ, said the timing of the latest survey — conducted on Saturday and Sunday — may explain why the increase in confidence was muted given many respondents wouldn’t have known the election result.
“The surprise election result, which people surveyed on Sunday would have known, most likely had a significant impact on sentiment,” Plank said in a note following the latest confidence update.
“The tone of the domestic economic data released during the week prior to the survey — such as falling business conditions, modest wage gains and rising unemployment — would not have provided much of a boost to confidence.”
That suggests next week’s survey will provide a cleaner read on what Australians are truly thinking about the Coalition’s surprise election victory.
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