According to latest index.
It was a mixed set of numbers in the latest ANZ- Roy Morgan Consumer Confidence Index with consumer confidence rising just 0.6%. The economic conditions sub-indices were positive but the financial sub-indices were mixed. It was a disappointing result for the ‘time to buy a household item’ index partially retracing the previous week’s gain declining 2.1%.
Current economic conditions were up 0.9%, future economic conditions gained 0.5% and future finances rose 4.8%, reversing much of last week’s 5.3% drop. However the outlook for current finances dipped 1.3%.
While confidence has been hovering around the same level for the last few weeks, a softening in the tension on US-China trade deals may have supported sentiment, ANZ head of Australian Economics, David Plank said.
“Domestically, the numbers from the capex print were encouraging though they weren’t strong enough to offset some of the other indicators suggesting a soft GDP print for Q4. There is a lot out this week, with the Reserve Bank statement and Q4 GDP report the most notable. There is some prospect that Q4 GDP could be negative, which might be a blow to consumer sentiment in the week ahead.”
Plank said the continued resilience in consumer confidence suggests the recent slowing in GDP growth has not yet impacted the labour market to a material extent. “We think whether it does or not will be the key to the outlook and the stance of the Reserve Bank.”