Household buying intentions strengthen.
The ANZ-Roy Morgan index made a strong recovery last week, rising 2.8% after the prior week’s 1.1% drop. All indexes including financial and economic were positive. And the ‘time to buy a household item’ also strengthened, increasing 1.3%.
ANZ head of Australian Economics, David Plank attributes the recovery in sentiment in part to Reserve Bank comments about a “gentle” upturn in the economy.
“Reasonable CPI data and the lift in building approvals may have also contributed to the lift in sentiment,” he said.
“The jump in future economic conditions were notable as this index has been acting as a major drag for the whole index. Better global news, reflected in higher global share prices, likely also impacted.
“However, the weekly inflation expectations sub-index remained at its recent low and the RBA is likely to be paying some attention to that.”