In what feels like a rare piece of good economic news for Australia, the ANZ – Roy Morgan Weekly Consumer Confidence Index has risen 1.5% in the past week. That builds on the previous week’s 0.9% increase in confidence.
This only takes confidence back towards long-run average levels. But the overall improvement in the outlook of consumers for the next 1 to 5 years and the answer to the “time to buy a major household item” question are all positive.
The question now, according to ANZ Chief Economist Warren Hogan is whether “confidence will sustainably lift from here.” Hogan highlights that confidence has moved “broadly sideways over the last six months despite a number of positive factors such as lower interest rates, falling petrol prices and rising house prices.”
He still believes that the labour market and wages need to improve for confidence to experience a “sustained lift” in the year ahead.