Consumer confidence in Australia has reached its highest point since the Reserve Bank of Australia's (RBA) interest rate cut in February. Last week, the consumer confidence index rose by 0.8 points to 88.3 points, with the four-week moving average also increasing by 1.0 point to 86.2 points.
The weekly inflation expectations showed a decline of 0.4 percentage points, settling at 4.5 percent, while the four-week moving average remained stable at 4.9 percent.
In terms of financial conditions, there was a mixed performance: 'current financial conditions' over the last year dropped by 2.4 points, whereas 'future financial conditions' for the next 12 months saw an increase of 0.9 points.
The short-term economic confidence for the next year experienced a rise of 3.2 points; however, medium-term economic confidence for the next five years fell by 0.4 points.
There was also a notable rise in the subindex related to purchasing major household items, which jumped by 2.5 points.
"ANZ-Roy Morgan Australian Consumer Confidence rose 0.8 points last week to 88.3 points," said ANZ Economist Sophia Angala. "The series is at its highest level since the Reserve Bank Australia (RBA)’s 25 basis point rate cut in February."
Angala attributed last week's improvement to increased household confidence in the economic outlook for the coming year: "Household economic confidence over the next year on a four-week moving average basis is at its highest level since early March, prior to the introduction of US tariffs on aluminium and steel products." She noted that this optimism might be bolstered by expectations of another RBA rate cut in May due to factors like moderating inflation and lower than anticipated household spending data amidst global uncertainties.