The scariest chart in the economy is no longer so scary with the ANZ-Roy Morgan Weekly Consumer Confidence index rising a solid 4.4% to 113.5 over the past week to Saturday.
The ANZ said that the 8% jump in confidence over the past two weeks “could suggest news of the carbon tax’s repeal and further Senate ructions around policies that ultimately saw confidence fall played a part in the improvement in sentiment”.
The flip side of course is that if the Senate becomes fractious again, confidence could take another hit.
But the positives of this bounce are neatly summarised by ANZ senior economist Justin Fabo who said:
“The sharp improvement over the past fortnight returns consumer confidence to levels seen in late April when adverse news flow around the Budget first began. This is a very encouraging sign that the ‘sticker shock’ from the Budget was temporary”.