Consumers still confident

Except for household purchases.

ANZ-Roy Morgan confidence continues to rise, gaining 1.2% last week, except when it comes to buying a household item, with the index falling 2.9%, losing some of the gains made after the Federal Election when it rose to its highest level since March.

Current financial conditions rose 1.2%, while future financial conditions were up 0.8%. These two indices have risen for three consecutive weeks which shows current financial conditions is at their highest level since early February. Current economic conditions also rose 3.0% while future economic conditions were up 4.5%.

“Consumers are upbeat about both their personal outlook and the economy in general,” ANZ head of Australian Economics, David Plank said. “The prospect of lower interest rates and what appears to be a major sentiment shift on the housing market are likely drivers of the positive outlook,” he said.

The gains come despite negative developments in the global economy. While the four-week moving average for inflation expectations was unchanged at 4.1%, the weekly reading dropped back under 4%. “This is the fifth, sub-4% reading since early March, an unprecedented run of low results for this survey,” Plank said.

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