Consumer confidence experienced a modest increase last week, rising by 0.5 points to reach 88.8 points. The four-week moving average also saw an increase of 0.8 points, reaching 87.0 points.
Inflation expectations remained steady at 4.5 percent for the week, with the four-week moving average slightly decreasing by 0.1 percentage point to stand at 4.8 percent.
The index measuring current financial conditions over the past year increased by 2.3 points, while future financial conditions for the next 12 months declined by 1.7 points.
Short-term economic confidence, reflecting expectations for the next year, grew by 2.7 points, whereas medium-term economic confidence over the next five years decreased by 1.9 points.
The subindex related to purchasing major household items rose by 1.3 points.
"Consumer Confidence rose 0.5 points last week to 88.8 points," said ANZ Economist Sophia Angala. "Across the subindices, household economic confidence in the next year recorded the largest increase, and on a four-week moving average basis, this subindex is now at its highest level since early May 2022, prior to the beginning of the Reserve Bank of Australia’s hiking cycle."
Angala noted that "the lift in this series may be supported by the de-escalation in US-China trade tensions last week." She added that domestic data indicating solid wage growth in the first quarter and a resilient labor market could also be contributing factors.
"We continue to expect a 25 basis point cut by the RBA at its meeting this week," Angala stated. "Rate cuts flowing through to household disposable incomes should support upward momentum in ANZ-Roy Morgan consumer confidence this year but may be softened by global uncertainty."