Positive household item buying intentions.
The ANZ-Roy Morgan Australian consumer confidence index rebounded 1.2% from its multi-year low reading last week, its first gain in four weeks. The biggest gain in the sub-indices was the 5.3% jump in the ‘time to buy a household item’, albeit from a 10-year low in the previous reading, while other sub-components were mixed.
On the back of strength in future finances and ‘time to buy a household item’ consumer confidence recovered some lost ground, according to ANZ head of Australian Economic, David Plank, “although it was only a modest gain after three weeks of decline”.
Plank said weakness in economic conditions is still a concern, considering it is around multi-year lows.
“This week’s data could significantly impact sentiment, especially Q3 GDP. Annual growth may accelerate a touch, as last year’s weak Q3 report drops out, but this hardly points to an economy that is undergoing more than a gentle turn,” Plank said.
“Yesterday’s ANZ job ads for November highlighted that a gentle turn is unlikely to be enough to stop the unemployment rate moving higher and consumer sentiment looks set to be challenged for a while yet.”