The ANZ-Roy Morgan Research (RMR) consumer confidence index rose in the week ended 21 September, up 1.6 points (1.4%) to 112.9, taking it just below its long-run average reading of 113.2 (see next chart).
As usual, ANZ chief economist, Warren Hogan, summoned the confidence fairy and wealth effect from rising housing prices:
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“While we expect soft income growth to weigh on consumer confidence and spending going into 2015, this should be offset to some extent by wealth effects from rising house prices”.
The below chart plots the most recent Westpac-Melbourne Institute Consumer Sentiment index against the ANZ-RM Consumer Confidence index:
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Clearly, the mood amongst Australian consumers remains fairly lacklustre. And who can blame them.
