Consumer confidence has shown a slight increase, rising by 1.3 points to reach 86.7 points last week. Despite this rise, the four-week moving average experienced a minor decline of 0.1 points, settling at 86.3 points.
Weekly inflation expectations saw a decrease of 0.2 percentage points, now standing at 4.7 percent, while the four-week moving average remained steady at 4.8 percent.
There was a small improvement in current financial conditions over the past year with an increase of 0.1 points, and future financial conditions for the next twelve months rose by 2.6 points.
Short-term economic confidence for the coming year decreased by 1.1 points; however, medium-term economic confidence over the next five years increased slightly by 0.4 points.
The subindex measuring the time to buy major household items experienced a significant jump of 4.4 points.
"ANZ-Roy Morgan Australian Consumer Confidence rose 1.3 points last week to 86.7 points, reversing last week’s decline," stated ANZ Economist Sophia Angala. "The ‘time to buy a major household item’ subindex reached its highest level since late April 2022, prior to the beginning of the Reserve Bank of Australia (RBA)’s hiking cycle."
Angala attributed this rise in consumer confidence partly to ongoing end-of-financial-year sales throughout June.
"Confidence in the economic outlook weakened," Angala noted, "despite last week’s labour market data suggesting the labour market appears to be tracking better than what the RBA had expected in its May Statement on Monetary Policy."
She added that "We expect labour market resilience alongside robust household income growth to support a pick-up in ANZ-Roy Morgan Australian Consumer Confidence through this year," but cautioned that "ongoing trade and geopolitical uncertainty may soften its momentum."