Consumer confidence in Australia saw a slight increase last week, rising by 1.0 point to reach 84.0 points, according to the latest ANZ-Roy Morgan Consumer Confidence survey. Despite this weekly improvement, the four-week moving average for consumer confidence edged down by 0.2 points to 84.6 points, maintaining levels close to a 12-month low.
Weekly inflation expectations dropped by half a percentage point to 4.7 percent, while the four-week moving average remained steady at 5.1 percent.
The survey also found that perceptions of current financial conditions over the past year improved by 2.0 points. However, views on future financial conditions for the next 12 months declined by 1.1 points.
Short-term economic confidence for the next year increased by 1.0 point, and medium-term economic confidence for the next five years rose more sharply with a gain of 3.7 points.
The subindex measuring whether it is a good time to buy major household items fell slightly, declining by 0.5 points.
“ANZ-Roy Morgan Consumer Confidence rose 1.0 point to 84.0 points. But its four-week moving average is hovering around a 12-month low. Last week’s rise was driven by improving confidence in economic conditions, noting this was supported by a bounce in the five-year economic outlook, after a 15-year low last week,” said ANZ Economist Sophia Angala.
“In an interview last week, RBA Assistant Governor Hunter noted that consumer confidence is at a ‘relatively subdued’ level. We see solid income growth, rising housing prices and a final RBA rate cut in February all supporting upward momentum in the consumer sector in the coming months,” she said.