Consumer confidence rises slightly.

ANZ-Roy Morgan Australian Consumer Confidence rose 0.8% last week with all sub-indices showing positive, apart from the future financial situation.

The slight rise more than reversed the previous week’s fall, broadly consolidating around the current level over September, ANZ head of Australian economics, David Plank said.

“Overall confidence remains above the long-run average. Importantly, consumers’ perception of the current financial situation registered a third consecutive weekly gain and is at its highest level since early 2018. Consumer resilience in the face of the weaker housing market and, more recently, the rise in petrol prices is encouraging,” he said.

However, a number of domestic events  could impact consumer sentiment over the next few weeks, ranging from this week’s RBA statement and news on retail sales to labour market data later in October, he said. “On balance we are constructive on the data flow, which should broadly support consumer confidence though we are mindful that rising petrol prices in particular could negatively impact sentiment, even if this does not seem to be the case in recent weeks.”

The ‘time to buy a household item’ sub-index increased by 1.3% and follows a 4% fall last week. Households’ perception of current financial conditions rose 0.7%, its third consecutive weekly gain.

Sentiment regarding the future financial situation fell by 1.2%, only partially reversing the previous week’s 2.4% rise while views towards current and future economic conditions rose by 2.1% and 1.3% respectively. Both these indices fell last week, by 1.9% and 3.0% respectively.