The latest ANZ-Roy Morgan Consumer Confidence index confidence gained 1% last week, its second consecutive weekly gain, as confidence declined in NSW and Queensland, but increased in Victoria, SA and WA.
Three of the five sub-indices also lost ground with ‘current financial conditions’ falling 3.6%, its lowest level since the start of the pandemic in late March 2020. ‘Future financial conditions’ fell 2.2% after a 4.9% gain the week before while ‘current economic conditions’ dipped 2.5%, following an 8.5% jump the week before. However, ‘future economic conditions’ gained 4%.
There was good news on ‘the time to buy a major household item’ measure that rebounded 9.2%, after a cumulative decline of 13% over the previous six weeks.
ANZ head of Australian Economics, David Plank said the rise in consumer confidence was most likely boosted by solid employment growth in October and a further easing in inflation expectations.
“Despite the consecutive gains, sentiment remains close to levels last seen during the early weeks of the Covid lockdowns,” he said. “Consumer spending has stayed strong, with spending momentum similar to pre-pandemic levels while the jump in whether now is a good time to buy a major household item may signal sentiment regarding purchases on Black Friday.”