The ANZ-Roy Morgan Research (RMR) consumer confidence index rose for the first time in five weeks, rising by 1.0 points to 110.8 in the week ended 21 February, to be tracking just below the long-run average (see next chart).
As shown above, consumer confidence has tracked sideways for around six months.
In explaining the result, ANZ Chief economist, Warren Hogan, noted that “households remain concerned with the economic outlook in an environment of soft wage growth and ongoing job losses in the resources and manufacturing sectors”. He also doesn’t expect a recovery until the labour market improves, which is unlikely given the huge unwind of investment still to occur in the mining sector, along with the upcoming closure of the local automotive assembly industry.
The below chart plots the most recent Westpac-Melbourne Institute Consumer Sentiment index against the latest ANZ-RM Consumer Confidence index, which have converged recently:
