ANZ-Roy Morgan Consumer Confidence data is out and it’s hit a 12 week high, rebounding 2.7% to 114.6 for the week ending October 26.
The bank said the jump was supported by the rally in stock markets, including the ASX which closed up 2.7% for the week, the best week it’s had since February.
Less volatility in global markets could also be behind the surge.
Households’ view of economic conditions over the 12 months was up almost 10% to the highest level since mid-April, which was just before negative news surrounding the Federal budget started to surface. Expectations of economic conditions over the next five years also improved solidly up 3.9%.
ANZ chief economist Warren Hogan said while the result is encouraging it is still fragile.
“Combined with more evidence last week of a coming pick-up in non-mining business investment and indications that the labour market is gradually strengthening, this gives us more confidence that the gradual transition towards the non-mining economy is continuing,” he said.
“However, consumer confidence clearly remains fragile and we will continue to monitor confidence closely for an early-read on consumption into Q4.”
Here’s the chart.