The bushfire threat is over, and Australians got back to business with the ANZ-Roy Morgan Consumer Confidence index gaining 1.2% this week, more than reversing last week’s loss.
The gains were a little more than the losses with current finances and economic conditions both registering gains, however, future finances and economic conditions were flat. The ‘time to buy a major household item’ index fell 0.9%, adding to the loss of 5% seen in the previous reading.
ANZ head of Australian Economics, David Plank said the consumer confidence index has risen to its highest level this year, with sentiment possibly buoyed by the continued gains in asset prices.
“The fact the coronavirus hasn’t become established in Australia might be a contributing factor, although the measures taken by the government to help ensure this remains the case will have economic consequences.” Key domestic influences on sentiment will be wage and employment data, Plank said.
“We aren’t expecting the news to be flash, which may see confidence dip over the coming week and so continue the up and down behaviour seen in recent weeks.”