Consumer confidence has reached its highest level in 30 months, rising by 2.7 points to 88.4 points last week. The four-week moving average also saw an increase of 0.5 points, reaching 86.9 points.
In the realm of inflation expectations, there was a slight decline of 0.2 percentage point to 4.8 percent on a weekly basis, while the four-week moving average rose from 4.8 percent to 4.9 percent.
The 'current financial conditions' over the past year improved by 0.9 points, and 'future financial conditions' for the next twelve months experienced a significant jump of 4.0 points.
However, 'short-term economic confidence' for the upcoming year saw a decrease of 0.8 points, whereas 'medium-term economic confidence' over the next five years increased by 1.8 points.
A notable rise was observed in the 'time to buy a major household item' subindex, which climbed by 7.5 points.
ANZ Economist Sophia Angala commented on these developments: “Consumer Confidence increased 2.7 points last week to 88.4 points, its highest level since May 2022.”
Angala further noted that “the rise in confidence was seen across most subindices,” although households’ economic outlook for the next year slightly declined by 0.8 points but remained within a stable range since October.
The economist highlighted that “the ‘time to buy a major household item’ subindex ticked up 7.5 points as Black Friday related sales continued," marking "the subindex’s largest weekly rise since Black Friday sales in 2023."
Weekly inflation expectations decreased slightly: “Weekly inflation expectations dropped 0.2 percentage point to 4.8 per cent last week,” Angala said, attributing this pullback to recent trends following an increase to five percent previously.
Angala also referenced recent Consumer Price Index data: “This comes after the monthly Consumer Price Index (CPI) indicator showed headline inflation was at two-point-one percent in October," aligning with "the Reserve Bank of Australia’s two-three percent target band.” However, she cautioned that "the components measured in the October monthly CPI indicator are skewed away from the main categories causing inflation.”