The latest ANZ-Roy Morgan Consumer Confidence data showed a slight increase of 1.1 %, a significant 5.5% higher than the same week a year ago. Confidence also rose in Victoria following the end of the state’s short five-day lockdown.
The increase was driven by growing confidence about personal finances over the next year and, in what will be encouraging news for electrical retailers, more people believe now is a ‘good time to buy’ major household items. The number of Australians expecting good ‘good times’ for the economy is unchanged.
According to ANZ head of Australian Economics, David Plank consumer confidence reversed its three-week losing streak as the nationwide inoculation program began a week ago. “Headline confidence is around its long-run average but what stands out is the jump in weekly inflation expectations to 3.9%, its highest level since early April,” Plank said.
A strong housing market and faster than expected recovery in the labour market, could be fueling inflationary concerns, he said. “Inflation expectations are still below pre-pandemic levels, so could rise further without causing undue alarm for the Reserve Bank.”