Consumer confidence recovers post-Budget losses

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ScreenHunter_15 Mar. 18 16.24

By Leith van Onselen

The ANZ-Roy Morgan Research (RMR) consumer confidence index has now more or less recovered from its Budget-induced slump, rising another 4.8 points in the week ended 20 July to 113.5, and is now basically in line with its long-run average reading of 113.7, and only some 2.2% lower than April’s pre-Budget high (see next chart).

ScreenHunter_3399 Jul. 22 10.46

The below chart, which plots the most recent Westpac-Melbourne Institute’s Consumer Sentiment index against the ANZ-RM Consumer Confidence index, highlights the mood of the Australian consumer more clearly:

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ScreenHunter_3400 Jul. 22 10.49

Expect next month’s Westpac consumer sentiment reading to record a similar bounce.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.